EUR/USD 14 OCTOBER 2011

EUR/USD

Price gave us a BF786 and a bearish cs formation, but the  stop was too big for the trade, price never came back to test the cs formation until after the UK session closed . Price rallied late in the afternoon session to test 3800.

FOR TODAY:

We are still in the AB swing, we will still go short if we get a bearish cs formation at current levels or higher up inside the B high. We have interim support down at 3684, if we fall and get a bullish cs formation around that price it will be a bullish sign, else we need price way down at the 618/786 of this swing for a long trade setup. Both of these entries will be confirmed by cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

Price gives us a bearish cs formation from current levels, or higher up as long as its inside the B high. Trade this for 80-100 pips since it’s a shallow bounce. Stops above the cs formations, 50 pips max.

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 get down to support at 3684 and get a bullish cs formation, this will serve as a double dip and will be good for 100 pip run, or we need price way down at the 618/786 of this AB swing, which is very far away at present. Once we hit the 618 wait for a bullish cs formation, place stop below the low of the cs formation, max 50 pips stop, limit will be 80-100 pips for the 618 entry. Else lower down at the 786 will be the next opportunity.

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