Friday, 27 January 2012

EUR/USD 27 JANUARY 2012



EUR/USD
Price rallied yesterday giving us a new B high so we have a new AB swing in play.

FOR TODAY:
We can only sell after price hits the BF786 at 3160 – if the 3077 swing low holds-  and then gives us a bearish cs formation.
Else long trade setups are considered down at the 618/786 of this AB swing.

SHORT: Will be going short only IF:
Price hits the BF786 and then gives us a bearish cs formation, trade this entry for a limit of 60-70 pips since the prior bounce is a shallow one, stops 14 pips above the high of 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 to retrace to the 618/786, then a bullish cs formation for a long trade setup.  Stops 10 pips below the low of the cs formation, max 1.5% risk. The limits for the 618 entry will be 60-70 pips, and the 786 entry will be a ST to the BF786.

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

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