EUR/USD 4 NOVEMBER 2011

EUR/USD

There was a BF786 trade entry yesterday but stop was too big for the trade. Price did come back to test the level late in the session after the interest rate announcement came out of ECB.

FOR TODAY:

We are looking for price to extend its rally today heading for 1.4000 where we have a 618 fib. We are looking to buy dips to that level, stops below the cs formations.

Else if price falls and takes out the B low at 3607 then we will wait for a new B to form and we will have a new AB swing in play.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and a bearish cs formation after hitting the 618/786. Trade the 618 entry for a limit of 100 pips and the 786 will be a ST to the BF786. Stops above the cs formations, max 1.5% risk.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

Today we have a DABF786 trading day where we are looking for continuation of the rally, we are looking for dips to buy into with price heading for 1.4000. Place stops below the low of the cs formation, max 1.5% risk.

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