EUR/USD 5 DECEMBER 2011

EUR/USD

Price gave us the BF786 entry we were looking for on Friday and fell the 100 pips. Price then bounced off the 618 of the AB swing.

FOR TODAY:

With the BF786 entry on Friday, today should be a DABF786 trading day where we expect price to continue down. For a short entry we would need a rally and a bearish cs formation. Be weary of support at the 618 at 3368 where we already bounced off.

Else we will be looking for long entries if we get another bullish cs formation at the 618, else lower down at 3320-786.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a 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 price rallies to the BF786 and then gives us a bearish cs formation, the limit will be at the 786 since we would have had a 618 prior bounce.

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 get another bullish cs formation at the 618, showing that the fib is holding, or lower down at the 786. 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. 

Stop for entry is at zero already.

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