Monday, 3 October 2011

EUR/USD 3 OCTOBER 2011



EUR/USD
No trade setup on EUR on Friday.

Price has taken out the B low on this pair and we are now waiting for a new B to form. Once we have a B we can draw fibs and ascertain where the 618 and 786 are. Until then we have no trade setup on EUR.

SHORT: WILL ONLY BE GOING SHORT IF:
We need price higher up at the 618/786 of this AB swing before we can consider going short. We then need a bearish cs formation as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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:
We first need a B to form, once we have that we need a swing high, then a pullback to the BF786 and a bullish cs formation for a long trade setup. At this stage we don’t even have a B yet, so there will probably be no trade setup on the EUR for a long trade in todays sessions.

IF something develops I will post it.

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

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