EUR/USD 19 JANUARY 2012

EUR/USD

Price rallied to the A high of the AB swing. We are currently sitting at the A high, if price takes out the A high we will be reversing on this pair on this timeframe.

FOR TODAY:

If we get a clear bearish cs formation at current levels it will qualify as a short entry. 

Else we have a reversal on our hands if price violates the A high on a closing basis.

SHORT: Will be going short only IF:

We get a clear bearish cs formation at current levels telling us that the resistance is holding. Trade this as a ST down 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 price at the BF786 and a bullish cs formation for a long trade setup. 

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