EUR/USD 29 FEBRUARY 2012

EUR/USD – follow me on twitter @fxdailyforecast

Euro gave us a bearish cs formation yesterday after hitting the BF786, we exited that trade last night with a 27 pip loss.

FOR TODAY:

We are still in sell territory with price still inside the B high, price just gave us a bearish cs formation, we are in short at 06h00GMT.

A sustained break of the 3485 high negates this outlook and gives us a new AB swing in play.

SHORT: WILL ONLY BE GOING SHORT IF:

Price gave us a bearish cs formation and we are short this pair. Stop is 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.