AUD/USD 11 APRIL 2012

AUD/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg

Price fell yesterday and took out the B low giving us a new AB swing. The bounce out of the low could also be viewed as a failure since it was quite a strong bounce.

FOR TODAY:

We will look to buy after a dip and a bullish cs formation. 

Short trades are considered circa yesterdays highs if we get failure at those levels.

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

SHORT: Will be going short only IF:

Price rallies to yesterday’s highs and gives us a bearish cs formation. This will be DD entry and will be good for 100 pips. Stop will be 13 pips above the high of the cs formation, max 1% 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 price to dip followed by a bullish cs formation – preferably a test of the BF786 followed by a bullish cs formation. Stops 10 pips below the cs formation, max1% risk. Limits defined at time of entry.

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