EUR/USD 30 MARCH 2012

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

No short trade setup yesterday, price fell but didn’t give us a clear enough rally first. Price bounced off the 50 and rallied during Asia.

FOR TODAY:

Price is currently at the BF86 area, a bearish cs formation from current levels while inside the 3384 will be a sell entry.

A rally and a sustained break of 3384 negates this view giving us resumption of uptrend with a new AB swing forming.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need a bearish cs formation from current levels or higher while inside the 3384 high for a short entry. Place stop 13 pips above the cs formation, max 1% risk. Limits will be at 3242 over coming sessions.

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 go long if price reaches circa 3280 or yesterday’s lows and gives us a bullish cs formation, this will be a DD entry and will be god for a 100 pip rally.

Else if that support doesn’t hold the we 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.