EUR/USD 25 JUNE 2012

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

Price consolidated on Friday, not having tested the 786 as yet.

FOR TODAY:

We are still looking for a test of the 786 down at 2507. We cannot rule out a rally on this chart after price tests the 786.

Short trade setups are considered after failure at Fridays highs or higher up circa 2700.

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:

Risk /reward ratio doesn’t warrant a short from these levels -2529 06h30GMT- since we have a 786 down at 2507. We need a test and failure at Fridays highs for a short entry, else higher up circa 2700.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Bullish cs formations after price hits the 786 will initiate long trade setups. Place stops 10 pips below the cs formation. Limits defined if set-up occurs.

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.