Wednesday, 2 May 2012

EUR/USD 2 MAY 2012


EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg
Price gave us a bearish cs formation at the B high yesterday which we entered short. We are still in that trade setup.

FOR TODAY:
With yesterdays failure at the B high we look for price to continue down today, maybe even after a rally. We won’t be able to add to yesterday's position on a test since it won’t be 50+ pips in the money yet.
Long trade setups are only considered if we get a DD entry at the 618, or if we get a bullish cs formation after price hits the 786.

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

SHORT: WILL ONLY BE GOING SHORT IF:
We will look to get limited out if price falls, we probably won’t be able to add to yesterday's position since it won’t be 50+ pips in the money – our limit on yesterday’s trade is circa 50 pips.

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 get to the 618 and price gives us a DD entry, or price falls to the 786 and price gives us a bullish cs formation. Place stop 10 pips below the cs formation, max 1% risk. Limits defined at time of entry.

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

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