EUR/USD 4 JULY 2012

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

We are still in the AB downswing on this pair, price fell from the 786/86 on Friday and has consoliodated since.

FOR TODAY:

We remain bearish on this pair until 2746 is broken on a sustained basis. We therefore continue to look for bearish sc formations after rallies.

Long trade setups will be considered after a test of the BF786 followed by bullish cs formations.

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

SHORT: WILL ONLY BE GOING SHORT IF:

Short trades can be considered after a rally followed by a clear bearish cs formation. Remember we need that clear bearish sc formation telling us that price is reversing, because we expect price to rally to break the 2746 high.

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 are expecting price to extend towards 2746, but we don’t have a long entry according to the system, we have to wait for a pullback to the BF786 followed by a bullish cs formation.

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