EUR/USD 4 OCTOBER 2011

EUR/USD

No trade setup on EUR yesterday.

Price has taken out the B low on this pair yesterday and it seems that for now we have a B in place. We can only sell up at the 618/786 of this swing, or buy if we get a test of the BF786 and a bullish cs formation.

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 need a swing high, then a pullback to the BF786 and a bullish cs formation for a long trade setup. We will wait and see if we get a test of the BF786 or the lows and a bullish cs formation for a long trade setup.

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