EUR/USD 12 MARCH 2012

EUR/USD – follow me on twitter @fxdailyforecast

No trade setup on  Friday, price never gave us the bullish cs we were looking for.

FOR TODAY:

Price fell and took out the B low at 3096, not very convincingly though. If we get a bounce out of current levels we will go long with limits higher up at 3326, else a sustained fall below 3078 will give us a higher low in place at 3290, giving us a new AB swing and confirmation of the reversal on this time frame.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to retrace to Fridays highs, or higher up at 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 cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF

Since price has not convincingly broken and stayed below the 3096 lows, we will consider going long on a bullish cs formation. This cs formation should tell us that price is going to retrace deeper into the swing. We will look for limits higher up at 3326 over coming sessions. Place stops 10 pips below the low of the cs formation.

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