EUR/USD 31 JULY 2012

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

Price broke the A low yesterday starting the reversal process on this timeframe.

FOR TODAY:

We now looking for a retracement to 2326 at least followed by a bearish cs formation for a short entry.

A sustained break of 2389 negates this view and continues the uptrend.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to rally to 2326 or higher followed by a bearish cs formation for a short entry. Place stop 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

No long entries at present since we are in reversal.

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