EUR/USD 14 MAY 2012

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

We exited our long trade on Friday with 5 pips loss -being flat into the weekend.

FOR TODAY:

Price proceeded to take out the B low starting a new AB swing. We now have to wait for a decent B swing low to form before we can do anything further. Once we have that we can draw our fibs and ascertain where we can sell.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We first need a swing low to form, then 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

No long trade setups at present, and probably not in today’s sessions since we need an established B swing low in place, followed by a rally and a test of the BF - We wont trade long without this set-up in place first.

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