EUR/USD 24 OCTOBER 2011

EUR/USD

Price gave us the dip and the bullish cs formation we were looking for on Friday, limited out for 96 pips profit, 10 pips inside the 786-3857.

FOR TODAY:

If we get a bearish cs formation at these highs it will qualify as a short entry since we are still inside the A high. Stop above the cs formation, limit down at the BF786.

With recent price action we don’t expect to see the above, but rather looking for below:

Today we are looking for price to extend and break the A high doing a reversal on the 1h chart. Once we have this we need to wait for a new B to form, then a pullback to the 618/786 for a long opportunity.

SHORT: WILL ONLY BE GOING SHORT IF:

We get  a clear bearish cs formation inside the A high, trade stop above the cs formation 50 pips max. Limits set at the BF786 – If we get a bullish cs formation exit the short and reverse since we are expecting the bulls to rally for the highs today.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a dip and a clear bullish cs formation, trade it for 80 pips since the bulls will probably target the A high. Else if price dips all the way to the BF786 we will look to buy there.

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