Tuesday 31 January 2012

EUR/USD 31 JANUARY 2012


EUR/USD
Price bounced off the A low yesterday and ran to the BF86. Because we had an A low bounce, we expect price to go to the B high before falling again.

FOR TODAY:
We do however have a BF786 and a bearish cs formation for a short entry. I would wait for a test of the B high before a fall since we had an A low bounce yesterday.

SHORT: Will be going short only IF:
We have already hit the BF786, and we got a bearish cs formation, so we are in short territory. Trade this to the A low since the prior bounce was deep. If we get stopped out, trade the next bearish cs formation if we get another one higher up. Because of yesterdays deep A bounce we cannot rule out another test of the B high before we fall.

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

LONG: Will be going long today only IF:
No long trade setup at present, we need price down at the A low again and a bullish cs formation, else if price rallies and takes out the B high, then we will have to wait for a new B to form, then a retracement to the 618/786 of that AB swing for a long trade setup.

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

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