Thursday, 6 October 2011

EUR/USD 6 OCTOBER 2011



EUR/USD
No trade setup on EUR yesterday.

Price was pretty much range bound yesterday finding resistance still at 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.

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