EUR/USD 3 MAY 2012

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

We limited out with 50 pips profit on our short trade yesterday.

FOR TODAY:

Price has broken the A support low starting the reversal process on this timeframe. We have a B swing low in place, we can now sell up at the 618/786 of this swing, or buy after a BF786 followed a by a bullish cs formation.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We need price to test the BF786 and give us a bullish cs formation for a long trade setup. Place stop 10 pips below the cs formation, max 1% risk. Limits here will be 60-70 pips since it’s a shallow bounce.

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