Wednesday, 20 June 2012

EUR/USD 20 JUNE 2012


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.

No comments:

Post a Comment