EUR/USD 21 JUNE 2012

EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg

Price rallied but failed to take out the 2746 high yesterday. We need a sustained break of this high to continue up.

FOR TODAY:

Today we will wait to see if we get another run at the highs, failure again there will probably send price deeper into the AB swing.

We will look to buy after dips followed by bullish cs formations, supports are at yesterday’s lows – 2636, then lower down at 2568/56.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We will need price to rally to test the highs again followed by a bearish cs formation telling us that the bears are driving prices lower.

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 timeframe.

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