AUD/USD 14 FEBRUARY 2012

AUD/USD

No trade setups yesterday, price did fall after coming shy of the 786.

FOR TODAY:

Price hit the BF786 during the Asian session. We will look to see if this holds today, if it does it will be good for a rally to 774. A break of the 639 A low will confirm the reversal with a lower top at 777 and the start of a new downtrend on this timeframe.

SHORT: Will be going short only IF:

We need a test of yesterday’s highs and a bearish cs formation for a short trade. Stops 14 pips above the cs formation, max 1.5% risk, limits will be 70 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 are in BF786 buy territory, if we get a test of the BF786/86 or the B low and a bullish cs formation that will be a long trade set-up. Stop 10 pips below the low of the cs, max 1.5% risk, limits set at 774, this entry being a ST.

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