AUD/USD 13 MARCH 2012

AUD/USD - follow me on twitter @fxdailyforecast

Price gave us the bullish cs formation yesterday, but price fell after that and we were stopped out for 32 pips loss.

FOR TODAY:

We now have a new AB downswing in play. Price has confirmed the reversal on this timeframe by talking out the 1.0508 lows and giving us a new B low. We can only sell up at the 618/786 of this swing, or buy after price hits the BF786 followed by a bullish cs formation.

SHORT: Will be going short only IF:

We get a rally to the 618/786 and price then gives us a bearish cs formation. Place stop 13 pips above the high of the cs formation, limits advised upon entry.

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 will look to buy bullish cs formations after price hits the BF786 or while inside the 1.0473 lows. Stops will be 10 pips below the low of the cs formation, limits defined at time of entry.

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