Tuesday, 12 June 2012

EUR/USD 12 JUNE 2012


EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg
Price gave us the bearish cs formation at the UK open and fell to close the gap, down to the 86 of the AB swing where we have a morning star cs formation.

FOR TODAY:
We will look for a test of the m/star formation followed by another bullish cs formation for a long entry.

Shorts are considered on a test of yesterday’s highs followed by a bearish 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 get a rally followed by a clear bearish cs formation, or a test of yesterday’s highs followed by a clear bearish cs formation.  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 setup we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF
Price has already retraced down to the 86 of this AB swing and given us a bullish cs formation during the Asian session. We will look for a test of that cs formation followed by a bullish cs formation for a long trade setup. Place stop 10 pips below the low of the cs formation, max 1% risk. Limit out at the BF786 over coming sessions.

A sustained break of 2434 negates this view and starts a reversal on this timeframe.

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

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