EUR/USD 28 FEBRUARY 2012

EUR/USD – follow me on twitter @fxdailyforecast

No trade setup on Euro yesterday, price fell during the UK session and bounced off the 382 fib.

FOR TODAY:

We will look to short the Euro if price reaches the BF786 and then gives us a bearish cs formation.

Else if price rallies and takes out the 3485 high then we will have no trade setup, but a new AB swing in play and resumption of up-trend on this time frame.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to hit the BF786, or higher while still inside the 3485 highs, followed by a bearish sc formation for a short trade setup. Place stop 13 pips above the high of the cs formation, limits will be 70 pips.

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 need price to bounce off the 3366 lows followed by a bullish cs formation – this will be a DD entry and will be good for 100 pip rally, else we looking for support lower down at the 618/786 followed by a bullish cs formation. Stop 10 pips below the low of the cs formation, limits for the 618 entry will be 70 pips, and the 786 will be a ST.

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