EUR/USD 27 OCTOBER 2011

EUR/USD

We got stopped out on the short EUR trade lost 50 pips, had another short signal, but stop was too big.

FOR TODAY:

With the sharp rally overnight off the 50 fib level we are looking for price to extend today. We will look to buy dips if they present themselves, else if we get a clear B high we will wait for a pullback to the 618/786 of the new swing to be formed.

SHORT: WILL ONLY BE GOING SHORT IF:

We have already taken out the B high, but as yet don't have a new B high. Short if we get a clear bearish cs formation at current levels – below 1 4000, stop above the cs high, limits set at the 618 since we would have had a 50 fib prior bounce. 

Beware of bullish cs formations, the bears might just be driving price down in order to re-instate long trade setups and rally from there.

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 80-100 pips. Else we are waiting for a new B to form and price to drop to the 618/786 of the new swing.

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