EUR/USD 22 JUNE 2012

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

Price failed again yesterday just shy of 2700 and fell to take out the 618 of the AB swing. We expect price to head for 2510, maybe after a pullback before we fall.

FOR TODAY:

Today will be a DABF786 trading day where we are looking for price to extend the fall towards 2510 where we have 786 support. We will look to sell after a rally followed by a bearish cs formation.

Long entries are only considered once price reaches the 786, where after a bullish cs formation we will look for a long entry setup

Price has NOT reversed on this timeframe as yet, we need a sustained break of 2442 to start the reversal on this timeframe.

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 ideally look for a rally followed by a bearish cs formation telling us that the bears are driving prices lower. Initial targets here will be 2510, expect a bounce at 2510/00, but bears will be targeting 2442 to start the reversal on this timeframe.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Rallies will be used as selling opportunities, so we will not be attempting long trades, we expect price to fall towards 2500/2442 over coming sessions.

Only a sustained 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.