Tuesday, 19 February 2013

EUR/USD 19 FEBRUARY 2013

18th – Price printed a slightly lower B low on Friday and bounced but failed to continue the rally. We are still in the same price area. We need to wait for a retracement up to the 618/786 of this swing for a short trade setup. Else a fall and a break of 3305 will likely open the downside towards the 3256 lows, thereby starting a bigger reversal.



19th- Not much change to yesterday’s chart. Price has pretty much gone sideways with the US holiday yesterday. We are still looking for price to retrace to the 618/786 of this swing where we will be looking for resistance and a short trade entry. Else if we don’t get a reversal and price rallies up to violate the A high at 3520, then we’ll be looking at a reversal on this time-frame  We have an 86 bounce of the bigger swing, where we have a long trade setup with limits set at 100 pips.

LONG: Will be going long IF:
We are long for the following reasons – we are at an area of PR/S on the daily, we have 86 fib support on the 4h AB, we had a bullish cs formation on the 1h chart on Friday with a test and a bullish cs again yesterday. Stop is below the cs, limits at 100 pips.

SHORT: Will be going short IF:
We will wait for a retracement to the 618/786/BF786 of the bigger swing, before we initiate any short trade setups. 

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