AUD/USD 29 FEBRUARY 2012 - 4H CHART BELOW

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We did get the bearish cs formation at the 86 highs yesterday, price fell and bounced in the US session, we exited the trade with 3 pips profit as per post.

FOR TODAY:

Price has not taken the high out on a sustained basis. We have a bearish cs formation on the 1h chart which we traded short. It’s a small stop we have in place above the high.

A sustained break of 1.0815 opens the upside, starting a reversal on this timeframe.

SHORT: Will be going short only IF:

We are short on the bearish cs formation as at 06h00 GMT. Stops 14 pips above the cs formation, max 1.5% risk, Limits are lower down, will wait and see how far the cs can drive price lower.

If we don’t get the set-up we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We need price down at yesterday’s lows, or the BF786 followed by a bullish cs formation for a long entry. This entry will be good for 60-70 pips. Stop 10 pips below the low of the cs formation.

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