Wednesday, 20 February 2013

EUR/USD 20 FEBRUARY 2013



Price rallied yesterday starting a retracement, so far just shy of the 618, we will wait to see if the 618 holds as resistance, or if the 786 higher up keeps the downtrend in place. Reversal starts once price violates the A high on a closing basis. A fall from resistance and a break of the B low continues the downtrend.

Will be going long if:
We are already 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. I won’t be adding to any longs until the A high gets violated, followed by a retracement down to a fib entry.

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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