EUR/USD 17 MAY 2012

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

No trade setup on Euro yesterday, we seem to have a B swing low down at 2680.

FOR TODAY:

With the swing low in place we can now sell up at the 618/786 of this AB swing after bearish cs confirmations, or buy after price tests the BF786 followed by a bullish cs formation.

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

Price needs to test the BF786 and then give us a bullish cs formation for a long entry. Stops will be placed 10 pips below the cs formation, max 1% risk, limits will  be 60-70 pips.

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