Monday, 18 June 2012

EUR/USD 18 JUNE 2012


EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg
Price stopped us out on Friday with the short trade we were in for 44 pips loss. Price has since taken out the B high overnight with gap open.

FOR TODAY:
We seem to have a new B swing high in place and hence a new AB swing in play. We can only buy lower down at Fridays support , or lower down at the 618/786.

Short trades are considered if price tests the BF786 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 need a clear bearish cs formation after a test of theBF786. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at time of entry.
A sustained break of 2746 negates this view and opens the upside.

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 will wait for a fall down to Friday’s support, or lower down at the 618/786 of this swing. Place stop 10 pips below the low of the cs formation, max 1% risk.

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

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