EUR/USD 23 MARCH 2012

EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg

No trade setup on Euro yesterday, price came 9 pips shy of the BF786 and fell to take out the A low starting a reversal on this timeframe.

FOR TODAY:

We now have a new bearish AB swing in play on this chart. Price has retraced to the 50 of this swing so far. We need price up at the 618/786 of this swing for a short trade setup.

Else a bounce off the BF786 will initiate a long trade setup.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to rally to the 618/786 followed by a bearish cs formation. Trade the 618 entry for 70 pips and the 786 will be a ST to the BF786. Place stop 13 pips above the high of the cs formation, max 1% risk.

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 will need price to fall to the BF786 followed by a bullish cs formation, limits on this trade will be defined if we get this setup. Place stop 10 pips below the low of the cs formation, max 1% risk.

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