EUR/USD 8 NOVEMBER 2011

EUR/USD

We had an entry on EUR yesterday at 3750, price rallied and pulled back and we are where we entered yesterday.

FOR TODAY:

We need price to break 3813, then 3867 to open the topside and head for 1.4000, we will still hold the view that we are buying into dips until 1.4000. We are expecting yesterdays low to hold. If price violates that low, we still have support at 3650, then 3607.

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. Remember yesterdays trade has to be in the money by at least 50+ pips before we add to the position.

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