EUR/USD 18 JANUARY 2012

EUR/USD

Price gave us the bearish cs formation, but came shy of the 786, which for me would have been ideal.

FOR TODAY:

Today we have a DA618 trading day where we are looking for price to extend its fall. We will look to sell rallies after bearish cs formations.

SHORT: Will be going short only IF:

We have a DA618 trading day setup, we are looking for price to continue down today, so we will be selling bearish cs formations after rallies. Stops above the high of the cs formation, max 1.5% risk, limits 60 pips.

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

LONG: Will be going long today only IF:

We need price at the BF786 and a bullish cs formation for a long trade setup.

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

GBP/USD 17 JANUARY 2012

GBP/USD

Price eventually rallied during the Asian session and we are currently at the 786 of the swing.

FOR TODAY:

We need a bearish cs formation for a short entry on this pair.

Longs are only considered far below at the BF786. If we break the A high we will be reversing on this pair.

SHORT: WILL ONLY BE GOING SHORT IF:

Price has already hit the 786 of the AB swing, we now need to wait for a bearish cs formation for a short trade entry. Stop above the high of the cs formation, max 1.5% risk. Limits for this trade will be down at the BF786, 10 pips inside; this will be a ST entry.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We need price down at the BF786 and a bullish cs formation for a long trade setup. Currently quite far away.

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

EUR/USD 17 JANUARY 2012

EUR/USD

Price rallied off the lows, currently at the 382 of the AB swing.

FOR TODAY:

We can only consider short trade setups up at the 618-2780, or the 786-2823 of this swing. Long trade setups are only considered once price hits the BF786 and we get a bullish cs formation.

Else if price falls and takes out the B low we will then have a new AB downswing in play.

SHORT: Will be going short only IF:

Price rallies to the 618/786 and then gives us a bearish sc formation, trade the 618 for 60 pips profit and the 786 will be a ST to the BF786. Stops above the cs formation, max 1.5% risk.

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

LONG: Will be going long today only IF:

We need a BF786 and a bullish sc formation for a long trade setup. We don’t have a swing high yet, depending on the swing high prior bounce, place limit accordingly. Right now we are a few pips shy of the 50, if we fall from here and get a BF786, the limit will be at the 618 because of the 50 prior bounce.

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

EUR/USD 16 JANUARY 2012

EUR/USD

Euro also fell on Friday taking out the B low giving us a new A-2877, B 2623 setup.

FOR TODAY:

We can only consider short trade setups up at the 618-2780, or the 786-2823 of this swing. Long trade setups are a bit hard at present since we are pretty sideways at the B low area, we would need a really dominant bullish cs formation to consider going long.

Else if price falls and takes out the B low we will then have a new AB downswing in play.

SHORT: Will be going short only IF:

Price rallies to the 618/786 and then gives us a bearish sc formation, this is quite far away at present, so will probably not get a short setup at those levels today.

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

LONG: Will be going long today only IF:

We need a BF786 and a bullish sc formation for a long trade setup. Price is currently trading at the B lows, so we are already in the BF786 territory, but we will need a really dominant bullish cs to trade outside the range telling us that we are heading higher.

Right now not a clear setup so best to stay on the sidelines until something clearer comes along.

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

GBP/USD 16 JANUARY 2012

GBP/USD

Price fell on Friday taking out the B low giving us a new AB swing. A up at 5408 , and the B down at 5232. Price is still struggling to close below the 5270 lows, better seen on the daily chart.

FOR TODAY:

We will wait for a BF786 – currently down at 5253, and a bullish cs formation for a long entry or wait for price to hit the 618/786 and a bearish cs formation for a short trade setup.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price up at the 618 -5341, or the 786 -5370, and a bearish cs formation for a short trade setup. Trade the 618 for a 60 pip limit and the 786 will be a ST to the BF786. Stops below the low of the cs formation, max 1.5%.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get down to the BF786, currently at the 5253 price level, and we then get a bullish cs formation, trade this with a limit up at the 618 since we had a 50 prior bounce. Stops below the low of the cs formation, max 1.5%.

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

HOLIDAY ANOUNCEMENT

Please note that I will be off the desk till Monday 16th January 2012.

HOLIDAY ANOUNCEMENT

Please note that I will be off the desk till Monday 16th January 2012.

GBP/USD 15 DECEMBER 2011

GBP/USD

No trade setup on Cable yesterday. Price found resistance at the 5520 area as per analysis and reversed. Price then took out the B low and gave us a new AB swing, A 5531, B 5407.

FOR TODAY:

Price bounced up to the 618 of the AB swing yesterday, we can only buy bullish cs formations after price hits the BF786, and sell after bearish cs formations at the 618/786.

SHORT: Will be going short only IF:

We need price up at the 618/786 and a bearish cs formation for a short entry. Trade the 618 for 50-60 pips and the 786 to the BF786.

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

LONG: Will be going long today only IF:

We need price down at the BF786 and then a bullish cs formation for a long entry. Limit at the 786 since we have a 618 prior. Stop below the low of the cs formation.

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

EUR/USD 15 DECEMBER 2011

EUR/USD

No trade setup on EUR yesterday, we have a new B down at 2944, with the A up at 3236.

FOR TODAY:

Price is in a narrow range since yesterday afternoon. We need a BF786 and a bullish cs formation for a long trade set up, or a bearish cs formation after price hits the 618/786.

SHORT: WILL ONLY BE GOING SHORT IF:

We rally to the 618/786 of this AB swing and then get a bearish cs formation. Stops above the cs formation, the 618 will be a 100 pip limit and the 786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We still don’t have a decent swing high, so a BF786 trade setup will probably not happen during the upcoming session. Will wait and see.

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

GBP/USD 14 DECEMBER 2011

GBP/USD

Sterling also gave us a bullish cs formation after a test yesterday, but that also failed with price taking out it’s a low, starting the reversal process on this timeframe. We now need the new B low to get taken out to confirm the downtrend in place.

FOR TODAY:

We will be looking for short trade set-ups higher up in the AB swing. This is a big AB swing we have on Sterling, with the A up at 5779.

SHORT: Will be going short only IF:

With the 618/786 being way up at 5653/5709 respectively, we are looking for past support to become future resistance at 5520/30, and the 382 at 5576, if we get a clear bearish cs formation at these levels we will look to go short.

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

LONG: Will be going long today only IF:

No clear swing highs in place at present, so probably no BF786 long setups in today’s session.

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