EUR/USD 19 MARCH 2012

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Price gave us the dip on Friday, but we needed it lower for a long entry, price rallied anyway to the A high but never violated the A high.

FOR TODAY:

We are currently in sell territory at the A high, if we get a clear bearish cs formation from current levels it will initiate a short trade setup with limits down at the BF786. 

A dip and a bullish cs formation will have the bulls chasing the A high, a sustained close above the A high will start a reversal on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

Since we are at the A high, we need a clear bearish cs formation for a short trade setup. Stops will be 13 pips above the cs formation; limits will be at the BF786.

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 can only buy down at the BF786. Stop 10 pips below the low, limits defined at time of entry.

If we get a dip and a bullish cs formation today then price will probably target the A high at 3190, this will start the reversal process on this time-frame.

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