EUR/USD 17 OCTOBER 2011

EUR/USD

Price gave us a BF786 and a bearish cs formation on Friday, the trade was stopped out for 50 pips loss. Price rallied in the afternoon session to test 3900.

FOR TODAY:

Price has now confirmed the reversal by taking out the old B high giving us a new AB swing, we are now making higher highs and higher lows. We will look to buy dips at the 618/786 of this swing or sell BF786 after bearish cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

Price rallies to the BF786 and then gives us a bearish cs formation. This trade will attract a limit of 80 pips since it’s a shallow bounce. Stops will be above the cs formation, max 50 pips

If we don’t get the cs formations we are looking for at the fib levels then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

Price gets down to the 618-3764 price area and gives us a bullish cs formation. Trade this entry for a limit of 80 pips, stop below the low of the cs formation. Else if price falls past the 618, the next long entry opportunity will be the 786 at 3729.

If we don’t get the setup we are looking for then we don’t trade.