AUD/USD 20 FEBRUARY 2012

AUD/USD - Follow me on Twitter @fxdailyforecast

Price gave us the bullish cs formation we were looking for on Friday, but then stopped us out at 1.0740 with a 26 pip net profit from both trades we were in.Price opened last night with a big gap open, and then rallied to the 813 limit.

FOR TODAY:

While under the 1.0823/43 highs we will be looking for clear bearish cs formations.

Else a sustained break of the 1.0823 highs will start the reversal process on this timeframe.

SHORT: Will be going short only IF:

We need a clear bearish cs formation from current levels, or while inside the 1.0823/43 highs for a short trade. Stops 14 pips above the cs formation, max 1.5% risk, limits will be at 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 are looking for dips to buy into, after bullish cs formations.  Place stops 10 pips below the low of the cs formation, max 1.5% risk, limits set at 813, this will be a ST.

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