EUR/USD 28 MARCH 2012

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

No trade set-up on Euro yesterday, price rallied and fell back inside the A high, giving us a new A–swing-high at 3384.

FOR TODAY:

We now have a decent swing high at 3384, so today we can look for a test of the BF786 followed by a bearish cs formation for a sell entry, or we can only buy lower down at the 618/786 of this swing.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to rally and test the BF786 followed by a bearish cs formation for a short entry. Place stop 13 pips above the cs formation, max 1% risk. Limits will be 70 pips since it’s a shallow bounce.

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 618/786 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.