Friday, 1 June 2012

EUR/USD 1 JUNE 2012


EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg
Price broke the lows yesterday creating a new AB swing with the B low down at 2323, A up at 2427.

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 possible if we get a test of the BF786 followed by a bullish cs formation.

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
Price rallied to the 382 of this swing thus far, if price tests the BF786 and then gives us s bullish cs formation, that will initiate a long trade setup.  Place stop 10 pips below the low, limit 50-60 pips. Exit on bearish cs formations which might be driving price down again.

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

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