EUR/USD 1 FEBRUARY 2012

EUR/USD

Price fell yesterday after the bearish cs formation and we limited out 10 pips inside the A low for 88 pips profit.

FOR TODAY:

Price has now started the reversal process on the 1h chart by taking out the A low at 3076. We now have to wait for a retracement and then a fall taking out the B low and confirming the start of a downtrend on this time frame.

SHORT: Will be going short only IF:

WE need price to retrace to the 618/786 of this AB swing, then we need a bearish cs formation at those levels telling us that we’re heading down. Stop 14 pips above the cs formation, max 1.5% risk. Limits for the 618 will be 60-70 pips, and a 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.

LONG: Will be going long today only IF:

We can only trade long on a BF786; we don’t have a decent swing high as yet before a test of the B low. So stand aside on this buy entry for now unless a clearer setup develops during today’s session.

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