Wednesday 9 November 2011

EUR/USD 9 NOVEMBER 2011



EUR/USD
We had another entry  on EUR yesterday but was more or less at the previous days price so we wouldn't take it. Price rallied for the day but has since found resistance at the the 3867 highs, giving us a bearish cs formation at the highs.

FOR TODAY:
If we cannot violate the 3867 highs then we will probably find price reversing at this level, will wait and see today if we get another stab at the highs during the London session. If we break the high on a closing basis we will be heading for 1.4000, failure here though would give reason to believe that this is the lower top and that price is heading south from here onwards.

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:
Our system only allows us to sell at the 618/786, which is higher up. 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 get a clear bearish cs formation after failing at the 3867 highs then we can short it because of all the sideways action we’ve been having, this might become the high we have been waiting for – wait and see.

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:
We will still buy dips heading for 1.4000, if they present themselves.  Place stops below the low of the cs formation, max 1.5% risk. Remember if we are in a long trade setup from a dip and we get a reversal at the 3867 highs to exit the long position or at least place stop at zero.

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

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