EUR/USD 11 NOVEMBER 2013

Price fell to the BF786 area on Friday after the NFP number. If we get a clear bullish cs formation from current levels or lower down while inside the B low then we can expect price to rally towards 3500 over coming sessions. Else a fall and a sustained break of the B low will have us looking for another B low, keeping the A where it is.

Will be going long today if:

1.       We need a clear bullish cs formation from current levels, or lower down while inside the B low, maybe after a test of Friday’s lows even. Place stop 10 pips below the low of the cs formation, max 0.5% risk, limits 100 pips or if you are a swing trader, then 10 pips inside 3500, at 3490.

2.       Remember a fall and a sustained break of the B low negates this view.

Will be going short today if:

1.       No setups at present – stand aside.

GBP/USD 11 NOVEMBER 2013

Price fell on Friday with NFP taking us beyond the minor618 almost to the 786. We didn't get a bullish cs formation as a long entry as yet. We continue to look for an entry long, maybe after a test of the lows on Friday, or just a 618 of Friday’s lows. Patience is needed.

Will be going long today if:

1.       We are waiting for a test of Fridays lows, either the low itself or just a 50/618 retracement followed by a clear bullish cs formation on the 1h chart. Stops 10 pips below the cs formation, max 0.5% risk, limits either inside the A high or 100 pips.

Will be going short today if:

1.       No criteria in place for short trade setups - stand aside. A sustained break of the B low confirms the reversal.