EUR/USD 2 APRIL 2012

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

For those that traded on Friday there was a short setup that should have been exited either with 20 pips profit, or at zero in order to be flat into the weekend. Price is back at that same point at present - 05H45GMT

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.

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.