EUR/USD 11 MAY 2012

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The long trade setup yesterday was stopped out for 43 pips loss during the Asian session. Price is still at the B low area, not having taken it out on a closing basis.

FOR TODAY:

We are still at the BF area, a clear bullish cs formation from current levels will initiate a long trade setup.

A sustained break of the 2910/2900 level will give us a new AB swing.

Shorts are only considered up at the 618/786 of this swing, after confirming cs formations.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to retrace up to the 618/786 of this AB swing, followed by confirming bearish cs formations for short entries. Place stop 13 pips above the cs formation, max 1% risk. Limits defined later.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Since we are already at the B low, we are looking for a clear bullish cs formation telling us that bthe 2900 level might be holding. Trade this for 60-70 pips since it’s a shallow bounce. Place stop 10 pips below the cs formation, max 1% risk.

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