EUR/USD – follow
me on twitter @fxdailyforecast and stocktwits.com/fxg
The long trade setup on Euro yesterday ran to its limit 10
pips inside the BF786. Price then gave us a bearish cs formation indicating
that we're heading lower.
FOR TODAY:
Today will be a DABF786 trading day where we are looking
for a test of the bearish cs formation followed by price moving lower.
Note that price has been well supported on dips lately so
watch out that this bearish cs formation – if we get one- doesn’t just drive
price lower so that the bulls can re-establish long trades.
We will consider long trades on dips lower down followed
by clear bullish cs formations, since as mentioned above, price is well
supported on dips.
If we don’t get the setup we are looking for then we
don’t trade.
SHORT: WILL
ONLY BE GOING SHORT IF:
Today is a DABF786 trading day where we are looking for price
to test last night’s bearish cs formation and give us another bearish cs
formation for a short trade set-up. Place stop 13 pips above the high of the cs
formation, max 1% risk. Limits here will be down at 2520 over coming sessions.
A sustained break of 2746 negates this view and opens the
upside.
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 will wait to see if price gives us a dip followed by a
clear bullish cs formation for a long trade setup. Trade this for 80-100 pips
with stops 10 pips below the cs formation.
Only a break of 2442 starts a reversal on this time-frame, until that breaks we remain bullish.
If we don’t get the setup we are looking for then we
don’t trade.
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