EUR/USD 10 FEBRUARY 2012

EUR/USD

Yesterday price bounced off the 786 of the small AB swing but failed to sustain a break above the high on a closing basis.

FOR TODAY:

We need 3214 support to be broken on a closing basis to initiate a reversal on this timeframe. Else a violation of the 3320 high will be a resumption of the uptrend.

SHORT: WILL ONLY BE GOING SHORT IF:

We need a test of yesterdays high and a bearish cs formation for a short entry. Place stop 14 pips above the high of the cs formation. Max 1.5% risk, limits will be at the A low.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We get down to support and price gives us a clear bullish cs formation for a long trade setup. Else a bullish cs formation at yesterday’s lows will constitute a DD entry which will be good for a rally to the BF786. Will have to wait and see what develops.  Stop will be 10 pips below the low of the cs formation, max 1.5% risk, limits will be at the BF786.

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