EUR/USD 1 AUGUST 2012

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

Price reached the 618 of this swing yesterday.  

FOR TODAY:

We will look for a test of the 618 today followed by a clear bearish cs formation for a short entry. If the 618 doesn’t hold then we look to the 786 for resistance.

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 are looking for a test followed by a bearish cs formation for a short entry. Place stop 13 pips above the cs formation, max 1% risk. Limits 70 pips for the 618 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.