EUR/USD 4 APRIL 2012

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

Price fell past the 3229 price level to the 786 of the AB swing yesterday. The setup was not clear prior to the fall.

FOR TODAY:

Price is at the 786 of the AB swing, a bullish cs formation from current levels or lower will initiate a long trade set-up.

Short trades are only considered up at the BF786 after bearish cs formations.

A violation of 3132 will start the reversal process on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

We need a clear bearish cs formation after price hits the BF786. Place stop 13 pips above the cs formation, max 1% risk. Limits will be 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

We are in buy territory being at the 786 of this upswing. If we get a clear bullish cs formation we will trade it long. Place stop 10 pips below the low of the cs formation, max 1% risk. Limits for this entry will be at  the BF786 over coming sessions.

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