EUR/USD 7 MARCH 2012

EUR/USD – follow me on twitter @fxdailyforecast

No trade setup yesterday, price has started the reversal process on this timeframe.

FOR TODAY:

We now have a close below 3186 on a sustained basis and this is the beginning of a reversal process on this time frame. We have a B low at 3102, we now need a retracement to the 618/786.

A break of the 3102 low will continue the down trend.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to retrace to the 618/786 of this AB swing. Once price hits either of those fibs we are looking for a bearish cs formation for a short entry. Stops 13 pips above the high of the cs formation, limits defined at time of entry.

If we don’t get the set-up we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF

We need a clear bullish cs formation after price hits the BF786 for a long trade setup. Stop 10 pips below the low of the cs formation, limits here will 60-70 pips since it’s a shallow bounce.

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