EUR/USD 2 DECEMBER 2011

EUR/USD

No trade setup on EUR yesterday, price rallied to the BF786 but only gave us a bearish cs formation after the session ended. We are now back at the same price we were yesterday this time.

FOR TODAY:

Today we have a DABF786 trading day where we expect price to continue down, since yesterdays bounce was a shallow one we don’t expect too much of a fall today, although NFP can really move price.

Else if price rallies and takes out the B high at 3532 then we will have a new AB swing underway.

SHORT: WILL ONLY BE GOING SHORT IF:

We ideally would like a small rally and then a bearish cs formation for a short entry today.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 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 – The long trade is still open, we can add to this position if we get 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 then we don’t trade.