EUR/USD 17 JANUARY 2012

EUR/USD

Price rallied off the lows, currently at the 382 of the AB swing.

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 only considered once price hits the BF786 and we get a bullish cs formation.

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, trade the 618 for 60 pips profit and the 786 will be a ST to the BF786. Stops above the cs formation, max 1.5% risk.

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. We don’t have a swing high yet, depending on the swing high prior bounce, place limit accordingly. Right now we are a few pips shy of the 50, if we fall from here and get a BF786, the limit will be at the 618 because of the 50 prior bounce.

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