EUR/USD 22 NOVEMBER 2011

EUR/USD

Price fell yesterday as anticipated and gave us the BF trade setup we were looking for with the bullish cs formation. Today we will look for EUR to extend gains towards the 618 up at 3661. Failing this we will take out the B low and form a new AB swing.

FOR TODAY:

Today is a DABF trading day where we will be looking for Eur to extend gains towards the 618 up at 3661. We need price to take out yesterdays high at 3540 in order to extend gains.

Yesterday’s entry is a ST so we will look to add on dips until 3651 – 10 pips inside the 618.

Else if price falls and takes out the B low we will then have a new AB downswing in play.

SHORT: Will be going short only IF:

Price rallies and tests Friday’s highs and gives us a bearish cs formation showing that the 50 is holding. This trade will be good for 100 pip profit since it will qualify as a DD entry. Stops above the high of the cs formation max 1.5% risk.

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

LONG: Will be going long today only IF:

We have a DABF trading day today, we can only buy on dips until 3651 is reached, we can also only add to yesterdays position once it is 50+ pips in the money.

So buy bullish cs formations after dips, stops below the low of the cs formation, max 1.5% risk, limits set at 3651 -10 pips inside the 618.

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