EUR/USD 16 JANUARY 2012

EUR/USD

Euro also fell on Friday taking out the B low giving us a new A-2877, B 2623 setup.

FOR TODAY:

We can only consider short trade setups up at the 618-2780, or the 786-2823 of this swing. Long trade setups are a bit hard at present since we are pretty sideways at the B low area, we would need a really dominant bullish cs formation to consider going long.

Else if price falls and takes out the B low we will then have a new AB downswing in play.

SHORT: Will be going short only IF:

Price rallies to the 618/786 and then gives us a bearish sc formation, this is quite far away at present, so will probably not get a short setup at those levels today.

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

LONG: Will be going long today only IF:

We need a BF786 and a bullish sc formation for a long trade setup. Price is currently trading at the B lows, so we are already in the BF786 territory, but we will need a really dominant bullish cs to trade outside the range telling us that we are heading higher.

Right now not a clear setup so best to stay on the sidelines until something clearer comes along.

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