EUR/USD 3 APRIL 2012

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

We went short on the bearish cs formation yesterday when price failed at 3384 highs. We exited that short trade with 45 pips profit. Price bounced off 3280 and rallied.

FOR TODAY:

Today again we will look to sell a failure at 3384 highs, or buy a bounce out of yesterdays low or the 3250 low. If we get failure again at 3384 then we expect price to fall to 3229.

A sustained break of the 3384 high resumes the uptrend with a new AB swing in play. The higher lows forming on the 1h chart is promising for the bulls targeting the 3384 highs.

SHORT: WILL ONLY BE GOING SHORT IF:

We need a clear 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 after a dip and a bullish cs formation inside  yesterday’s lows ,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.