EUR/USD 30 MAY 2012

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

Price fell late in the session yesterday and took out 2495 lows giving us a new AB down-swing.

FOR TODAY:

With the new AB swing we need price to retrace up to the 618/786 and give us bearish reversal cs formations for short entries.

Long trades are considered if we get a clear bullish cs formation from current levels.

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 to the 618/786 of this AB swing and give us bearish cs formations at either of those levels. Place stop 13 pips above 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.

LONG: WILL ONLY BE GOING LONG TODAY IF

Long trades are considered if we get a clear bullish cs formation from current levels. Stops 10 pips below the low, limits 60-70 pips. Exit on bearish cs formations which might have price driving down again.

A sustained break of 2460 negates this view and opens the downside again.

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