AUD/USD 5 APRIL 2012

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

No trade setup on Aussie yesterday, we waited for a B swing low to form all day.

FOR TODAY:

We might have the low established at 1.0243, with the A high up at 1.0464. We can only sell at the 618/786, or buy at a BF786 after cs formations confirming the entry.

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

SHORT: Will be going short only IF:

We need price to retrace to the 618/786 of this swing followed by a bearish cs formation. Stop will be 13 pips above the high of the cs formation, max 1% risk – Limits defined later.

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 test the BF786 followed by a bullish cs formation, trade this for 60-70 pips since it’s a shallow bounce. Stops 10 pips below the cs formation, max 1% risk.

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