EUR/USD 1 DECEMBER 2011

EUR/USD

Price gave us the bullish entry we were looking for and rallied to the BF786 to the limit for a 77 pip profit. For the position traders that trade is still open. Price went on to take out the B high, giving us a new AB swing in play.

FOR TODAY:

We are now looking for a retracement to the 618/786 of this AB swing for a long trade setup, after a bullish cs formation. Price has bounced off the 382 thus far.

Else we can only sell up at the BF786 after a bearish cs formation, currently at 3508.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to rally to the BF786 up at 3508 and then we need a bearish cs formation confirming the short trade entry. We have a prior bounce less than a 382 so the limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We are looking for a retracement to the 618 or the 786 and then a bullish cs formation for a long trade setup. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – Yesterdays trade is still open, we can add to this position if we get the entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618.

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