Monday, 21 May 2012

EUR/USD 21 MAY 2012


EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg
No trade setup on Friday, price rallied to take out the A high at 2758 starting a reversal on this timeframe.

FOR TODAY:
We now have to wait for a retracement to the 618/786 of this AB swing for a long trade setup.
Short trade setups are considered on a test of the BF, not an ideal setup at present.

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 an established B swing high followed by a swing low and a test of the BF before we can consider short trade setups. We don’t have that at present so we will not be looking for shorts in today’s session.

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

LONG: WILL ONLY BE GOING LONG TODAY IF
We need a retracement down to the 618/786 of this AB swing, followed by bullish reversals at either of those levels. Stops will be 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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