EUR/USD 23 MAY 2012

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We had an inverted hammer cs formation which we went long on, we were stopped out for 35 pips loss. Price continued down to the A low during the Asian session.

FOR TODAY:

Price fell down to the A low of the AB swing and seemed to have found support there. A clear bullish cs formation from current levels or while inside the 2641 A low will initiate a long trade setup.

Shorts can be considered on a break of the A low at 2641, price will then target the yearly lows, a break here should accelerate price towards 2550/30 over coming sessions.

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

SHORT: WILL ONLY BE GOING SHORT IF:

Price falls and breaks the 2641 lows we will enter short on a break, targeting 2550/30. Place stop above the 2684 interim high – if it’s still the high at the time of the A low break.

If we don’t get the set-up we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF

Price has already tested the A low during the Asian session and given us a bullish cs formation at the low telling us that price is now ready to rally towards 2823 – We will only go long IF we get a clear bullish cs formation from current levels, maybe even after another test of the lows during the UK session. Will wait and see.

A break of the 2641/23 lows negates this view and opens the downside.

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