EUR/USD 8 MAY 2012

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

No trade setup on Euro yesterday, price rallied to the 50 of the AB swing.

FOR TODAY:

We can only sell up at the 618/786 of this swing, or buy after a BF786, both entries after confirming cs formations.

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 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 setup 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 defined at time of entry.

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