EUR/USD 11 JUNE 2012

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Price bounced at the 86 late in the Friday session. It has since gap opened by some 100 pips during Asia. We expect this gap to be closed before the rally resumes.

FOR TODAY:

We have a new AB swing in play. We need to wait for a retracement down to the 618/786 which will also close the weekend open gap before we can look for long entries.

Shorts are considered on a bearish cs formation at the UK open.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We get a bearish sc formation either from current levels, or after a test of the overnight highs.  Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at time of entry.

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

We need a retracement down to the 618/786 of this AB swing followed by a bullish cs formation.Place stop 10 pips below the low of 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.