AUD/USD 2 APRIL 2012

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

No trade setup on Aussie on Friday, price gap opened by some 100 pips last night – hence the post to be flat into the weekend.

FOR TODAY:

Price came 1 pip shy of hitting the 618 during the Asian session. We can only sell a test of the high, or buy down at the BF786.

SHORT: Will be going short only IF:

We will sell a test of the Asian high followed by a bearish cs formation. This 618 entry will be good for 60-70 pips. Stop 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 a dip to the BF786 followed by a bullish cs formation for a long trade setup.  Place stop 10 pips below the low of the cs formation, max 1% risk. Limits on this trade will be define at time of entry.

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