EUR/USD 5 OCTOBER 2011

EUR/USD

No trade setup on EUR yesterday.

We now have a B low  at 3144 with our A up at 3689. Price bounced off the 382 of the AB swing. We need price higher up at the 618 for a short trade, or down at the BF786 for a long opportunity.

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:

Price gets down to the BF786 and gives us a bullish cs formation for a long trade setup. If this occurs, place stop below the low of the cs formation, max 50 pips stop, limit will be 80 pips since it’s a shallow bounce.

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