EUR/USD 7 OCTOBER 2011

EUR/USD

No trade setup on EUR yesterday. Price fell and gave us a big morning star but it wasn’t at the BF786 and the stop was way too big.

We are still in no man’s land on EUR, price dipped yesterday but not deep enough for an entry since it dint get to the BF786. We still need price down at the BF786 and a bullish cs formation for a long entry, or up at the 618/786 and a bearish cs formation for a short entry.

The bullish cs formation on the daily charts tell us that we are in for a rally over coming days.

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 at the 618 since we would have had a 50 prior.

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