GBP/USD 31 MAY 2012

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No trade setup yesterday, price fell and seems to have given us a new B low down at 5461.

FOR TODAY:

We have a new AB swing in play. We can sell up at the 618/786 of this swing, after bearish cs formations.

No long trade  since we don’t have the setups in place as yet.

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 – very far off -  of this swing followed by bearish cs formations for a short entry. Place stop 13 pips above the cs high. Limits defined at time of 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:

No long trade setups since we don’t have an established B swing  low in place – so stand aside on long entries.

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

EUR/USD 31 MAY 2012

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Price broke the lows yesterday falling and creating a new B low down at 2357.

FOR TODAY:

With the new AB swing we need price to retrace up to the 618/786 and give us bearish reversal cs formations for short entries.

Long trades are possible if we get a test of the BF786 followed by a bullish cs formation.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to retrace to the 618/786 of this AB swing and give us bearish cs formations at either of those levels. Place stop 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Long trades are considered if we get a clear bullish cs formation after price tests the BF786. Stops 10 pips below the low, limits 60-70 pips. Exit on bearish cs formations which might have price driving down again.

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

AUD/USD 31 MAY 2012

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Our target objective was reached yesterday with price falling and limiting out at 100 pips profit.

FOR TODAY:

The bounce out of 9672 during the Asian session is indicative of a bullish scenario. If we find support and price rallies from here – maybe after another test of the lows, then we are heading higher over coming sessions towards 9934.

Else if price breaks the low then we will resume the fall on this pair, opening up the downside.

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

SHORT: Will be going short only IF:

With this strong trend we could sell a clear bearish cs formation with price heading down to test the lows or even break it. Make sure to exit on a clear bullish cs formation though, since this will indicate the price might be heading higher as mentioned above. Stops are placed 13 pips above the cs formation, max 1% risk. Limits 50-60 pips.

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:

The bounce out of the B low overnight suggests that we might be in for a rally. We will look for a test of the lows followed by a bullish cs formation for a long trade setup. This will be a ST with limits higher up at 9924, only looking to reach this target over coming sessions. Place stops 10 pips below the low of the cs formation, max 1% risk.

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

GBP/USD 30 MAY 2012

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No trade set-up on this pair yesterday, price never gave us a bullish cs formation at the BF786.

FOR TODAY:

We have a new AB swing in play, with price having come shy of the 382 and fallen back to the B low. We can sell up at the 618/786 of this swing, after bearish cs formations.

Long trades are considered if we get a clear bullish cs formation from current levels.

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 bearish cs formations for a short entry. Place stop 13 pips above the cs high. Limits defined at time of 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:

If we get a clear bullish cs formation from current levels it will qualify as a long entry. Place stop 10 pips below the low, max 1% risk. Limits here will be 60-70 pips. Be cautious of bearish cs formations - might be driving price down yet again.

A sustained break of 5607 negates this view and opens the downside.

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

EUR/USD 30 MAY 2012

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Price fell late in the session yesterday and took out 2495 lows giving us a new AB down-swing.

FOR TODAY:

With the new AB swing we need price to retrace up to the 618/786 and give us bearish reversal cs formations for short entries.

Long trades are considered if we get a clear bullish cs formation from current levels.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to retrace to the 618/786 of this AB swing and give us bearish cs formations at either of those levels. Place stop 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Long trades are considered if we get a clear bullish cs formation from current levels. Stops 10 pips below the low, limits 60-70 pips. Exit on bearish cs formations which might have price driving down again.

A sustained break of 2460 negates this view and opens the downside again.

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

AUD/USD 30 MAY 2012

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We are short this pair with limits set at 9746.

FOR TODAY:

Price found resistance at the 786 highs again yesterday and has since broken yesterday's low during the Asian session. This should open the way down to the 9746 limit. We look to sell after rallies and bearish cs formations until 9746 reached.

Long trade setups are considered once we reach the BF786 followed by bullish cs formations.

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

SHORT: Will be going short only IF:

Today is a DA786 trading day, we are looking for price to continue down towards the 9746 limit. We will look to sell after a rally and a bearish cs formation with limits set at 9746. Stops will be placed 13 pips above the cs formations. 

If price just falls from current levels without a rally then we stand aside.

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 are looking for price to extend to the BF786 followed by a bullish cs formation for a long trade setup.

We will wait for that setup, until then we stand aside on long trades.

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

GBP/USD 29 MAY 2012

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Price gave us a short entry which was limited out during Asia with 34 pips profit.

FOR TODAY:

Price never reached the BF786 so we never went long this pair. We will need a pullback and a bullish cs formation to re-enter, if not today maybe tomorrow, we expect price to correct deeper into the bigger AB swing towards 5764/5800

Shorts are only considered circa 5720 after bearish cs formations.

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

SHORT: Will be going short only IF:

We will only consider short trade setups if we get bearish cs formations circa 5720. Be careful that shorts will be used only as dips by the bulls to get long, keep stops tight and reverse on clear bullish cs formations.

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 will need a dip followed by a bullish cs formation to enter a long trade setup, price came shy of the BF786 so we never entered a long setup. Will wait patiently for a dip followed by bullish cs formations for a deeper correction towards 5764/5800.

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

EUR/USD 29 MAY 2012

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Price gave us the bearish entry we were looking for yesterday, we exited the short trade with 47 pips profit.

FOR TODAY:

We had a BF786 bounce overnight which qualified for a long entry, we went long and are still in this trade with limits set at 2613.

Short trade entries are only considered  after bearish cs formations circa 2620.

A sustained break of 2623 will start the reversal process on this timeframe. A fall back below 2495 will continue the downtrend.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need a rally to yesterday’s highs followed by a bearish cs formation for a short entry. Stops will be 13 pips above the high of the cs formation, max 1% risk, limits will be down at the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We are currently long this pair with limits set at 2613, stops are 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.

AUD/USD 29 MAY 2012

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Price gave us a bearish cs formation for a short trade setup, we went short but price came 3 pips shy of our limit, stops were moved to zero, and we were stopped out at zero.

FOR TODAY:

We are back testing the 786 of yesterday, we need to break this level to move higher and break 9934 to start the reversal on this timeframe. We will only have a reversal once price breaks 9934 on a closing basis.

We will look for short entries while inside the 9934 highs, be weary of bounces like we had overnight if we do get short entries.

Long trades will be considered on the bounces mentioned above, since we are expecting a correction on this pair we are looking for bulls to target the A high.

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

SHORT: Will be going short only IF:

Price retraces to yesterday’s highs or higher up while inside the 9934 A high of this AB swing and gives us a clear bearish cs formation. Stops are 13 pips above the cs formation, max 1% risk. Limits here will be 10 pips inside the BF786.

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 will use dips followed by bullish cs formations as long entries until price takes out 9934. We had one during the Asian session, we will wait and see if we get another. Limits set 10 pips inside the A high.

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

GBP/USD 28 MAY 2012

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Price gave us a long entry which was stopped out for 25 pips loss. We have a new B low down at 5630.

FOR TODAY:

Price retraced to the 382 of the AB swing, a break of 5725 is needed to take pressure off the downside.

Long trades are considered down at the BF 786 after bullish cs formations.

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

SHORT: Will be going short only IF:

Shorts can be considered after clear bearish cs formations while inside 5725, else higher up at 5764/5800, the bigger 618/786. Place stops 13 pips above cs formations, max 1% risk, limits down at 5650 – keep an eye on risk/reward ratio.

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 fall down to the BF786 followed by bullish cs formations for long entries. Place stops 10 pips below the cs formation. Limits defined if the scenario presents itself.

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

EUR/USD 28 MAY 2012

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Price fell on Friday to test 2500 and has since rallied during the Asian session.

FOR TODAY:

We will sell a bearish cs formation while inside 2619.

Long trade setups are only considered down at the BF786.

A sustained break of 2619 will start the reversal process on this timeframe.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need a clear bearish cs formation from current levels or while inside the 2619 A high. Stops will be placed 13 pips above the cs formation, max 1% risk, limits here will be at 2532.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We need price to retrace to the BF786 and then give us a bullish cs formation. Stops will be 10 pips below the low of the cs formation, max 1% risk, limits defined if the scenario presents itself.

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

AUD/USD 28 MAY 2012

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Price rallied past the 618 during the Asian session.

FOR TODAY:

Since price rallied past the 618, I would prefer a rally to the 786 before I consider short entries.

Long trade setups are only considered down at the BF786, far off for now.

We will have a reversal on this pair once price breaks 9934 on a closing basis.

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

SHORT: Will be going short only IF:

Price retraces to the 786 of this AB swing and gives us a bearish cs formation. Stops are placed 13 pips above the cs formation, max 1% risk. Limits here will be 10 pips inside the  BF786.

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

LONG: Will be going long today only IF:

Long trade entries are only considered down at the BF786, we will stand aside for now.

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

GBP/USD 25 MAY 2012

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Price broke the B low giving us a new B low for the AB swing. Price retraced to the 382 of the swing. We are back at the lows again.

FOR TODAY:

We can only sell higher up at the 618/786 of this AB swing, we will wait for a retracement before selling.

Since we are the B lows, if we get a clear bullish cs formation we can go long.

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 before we can consider going short. Until then we will patiently wait.

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

LONG: Will be going long today only IF:

Price is trading near the B lows since the late US session, we need a bullish cs formation here to drive us higher. We will enter a long trade on such a bullish cs formation. Place stop 10 pip below the low of the cs formation, max 1% risk. Limits here will be 70-80 pips.

A sustained break of 5638 negates this view.

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

EUR/USD 25 MAY 2012

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No trade setup yesterday, price fell and gave us a new B for the AB swing.

FOR TODAY:

We will have to wait for a retracement to the 618/786 and a bearish cs formation for short entries.

Long trades are considered if we get a clear bullish cs formation from current levels.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need a retracement back to the 618/786 fib areas followed by a bearish cs formation for a sell entry

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We have been at the B low since the late US session yesterday. If we get a bullish cs formation from current levels it will still be considered a long entry. Stops will be 10 pips below the low of the cs formation, max 1% risk, limits can be 70-80 pips.

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

AUD/USD 25 MAY 2012

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No trade setup yesterday, price came 2 pips shy of the BF786 rallied and then found resistance at the 50.

FOR TODAY:

We can only sell up at the 618/786 of this swing, until then we wiat.

We will enter long trades after bullish cs formations since we have already bounced off the BF786 late in the US session yesterday.

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

SHORT: Will be going short only IF:

Price retraces to the 618/786 of this AB swing and gives us a bearish cs formation. Stops are 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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

LONG: Will be going long today only IF:

Since we have already had the BF786 tested yesterday, we now need a bullish cs formation before we can go long. Even a bullish cs formation after another stab at the lows would suffice. Place stops 10 pips below the low of the cs formation, max 1% risk, limits 9830.

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

GBP/USD 24 MAY 2012

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Price broke the B low giving us a new AB swing, but now in the UK session it seems to be breaking the B low again.

FOR TODAY:

The current break of the 5672 B low will have us looking for another swing low to call a B low. Until then we can have no setups.

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 a swing low first, then a retracement to the 618/786, until then we have no trade set-ups.

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 have broken the B low, now we are looking for another low to call a B low, we don’t have any long trade setups.

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

EUR/USD 24 MAY 2012

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Price fell and took out the yearly low giving us a new AB swing.

FOR TODAY:

We now have a new AB swing, with what seems to be another break to the downside – at time of writing. We will have to wait for a retracement  and a bearish cs formation for short entries – preferable to selling breaks of the B low.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need an established B low and a retracement back to the 618/786 fib areas for a sell entry.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Since we have a break of the B low, we will watch closely to see if it’s a sustained break. If we get a bullish cs formation from current levels it will still be considered a long entry. Wait and see.

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

AUD/USD 24 MAY 2012

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Price gave us a new AB swing yesterday. We have retraced to the 382 of that swing thus far.

FOR TODAY:

We can only sell up at the 618/786 of this swing.

Long trades are considered once we test the BF786 followed by a bullish cs formation.

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

SHORT: Will be going short only IF:

Price retraces to the 618/786 of this AB swing and gives us a bearish cs formation. Stops are 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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 and then give us a bullish cs formation for a long entry. Place stops 10 pips below the low of the cs formation, max 1% risk, limits will be 70-80 pips.

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

GBP/USD 23 MAY 2012

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No trade setup on Sterling yesterday, price fell to test the B lows and its still in that area.

FOR TODAY:

We can sell a break of the B low at 5731 if price heads lower during this session, else we can only sell up at the 618/786 which is some 220 pips away after we get bearish reversal cs formations at either of those levels.

Long trade will be considered after a clear bullish cs formation off the lows in the UK session, this will tell us that price might be ready to rally deeper into the AB swing

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

SHORT: Will be going short only IF:

A break of the 5731 lows will open the downside with price heading for 5600. Else we need price to rally to the 618/786 of this swing and give us bearish reversal cs formations at either of these fibs. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at entry.

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

LONG: Will be going long today only IF:

Price is currently at the B lows, we need a clear bullish cs formation from currently levels or while inside the 5731 lows to initiate a long trade set-up, place stop 10 pips below the low of the cs formation, max 1 % risk, limits can be 100 pips.

A break of the 5731 lows negates this view and opens the downside giving us a new AB swing.

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

EUR/USD 23 MAY 2012

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We had an inverted hammer cs formation which we went long on, we were stopped out for 35 pips loss. Price continued down to the A low during the Asian session.

FOR TODAY:

Price fell down to the A low of the AB swing and seemed to have found support there. A clear bullish cs formation from current levels or while inside the 2641 A low will initiate a long trade setup.

Shorts can be considered on a break of the A low at 2641, price will then target the yearly lows, a break here should accelerate price towards 2550/30 over coming sessions.

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

SHORT: WILL ONLY BE GOING SHORT IF:

Price falls and breaks the 2641 lows we will enter short on a break, targeting 2550/30. Place stop above the 2684 interim high – if it’s still the high at the time of the A low break.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Price has already tested the A low during the Asian session and given us a bullish cs formation at the low telling us that price is now ready to rally towards 2823 – We will only go long IF we get a clear bullish cs formation from current levels, maybe even after another test of the lows during the UK session. Will wait and see.

A break of the 2641/23 lows negates this view and opens the downside.

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

AUD/USD 23 MAY 2012

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We had a short trade setup which I exited prematurely and missed the fall.

FOR TODAY:

Price fell to take out the B low giving us a new AB swing in play. We can only sell up at the 618/786 of this swing.

Longs are not considered today since we don’t have a setup for a BF trade.

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

SHORT: Will be going short only IF:

Price retraces to the 618/786 of this AB swing and gives us a bearish cs formation. Stops are 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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 an established B Swing low followed by a rally with a swing high and then a test; we don’t have any of those criteria present on this chart so we will not be going long on this pair for today’s session. If this change I will post it on stocktwits.

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

GBP/USD 22 MAY 2012

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No trade setup on Sterling yesterday, price consolidated.

FOR TODAY:

We can sell up at the 618/786 which is 150+ pips away after we get bearish reversal cs formations at either of those levels.

Long trade setups are considered on a test of the BF786 followed by bullish cs formations.

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 rally to the 618/786 of this swing and give us bearish reversal cs formations at either of these fibs. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at entry.

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 will need price to test the BF786 followed by a bullish cs formation for a long trade setup.  Stops will be 10 pips below the low of the cs formation, max 1% risk, limits defined at time of entry.

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

EUR/USD 22 MAY 2012

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No trade set-up on Euro yesterday, price bounced off the 50, we needed it down at the 618.

FOR TODAY:

Price rallied in the US session off the 50 level towards the B high, but didn’t break it on a sustained basis, we are back in the AB swing, a bearish cs formation after a BF test will initiate a short trade setup on this pair.

Longs are only considered down at the 50 – if we get bullish support here it will be considered a DD entry good for a 100 pip rally, else lower down at the 618/786 of this AB swing will be our next level of interest for long trade setups.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need a test of the BF786 followed by a bearish cs formation before we can consider short trade setups. Place stops 13 pips above the cs formation, max 1% risk, limits 60-70 pips.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We need a retracement down to yesterdays 50 support – a bullish cs here will initate a long trade setup which will be good for 100 pips, else we will look for support lower down at the 618/786. Stops will be 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.

AUD/USD 22 MAY 2012

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There was a long entry setup on Aussie late in the session yesterday, intraday traders exited with circa 60 pips profit, swing traders are still in that trade with limits at 9957. Stops are at zero.

FOR TODAY:

Price is close to  the 786 at 9930, a bearish cs formation after price hits that level will initiate a short trade set-up.

Long trades are only considered on a test of the BF786 followed by a bullish cs formation.

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

SHORT: Will be going short only IF:

Price hits the 786 or higher while inside the A high of this AB swing and gives us a bearish cs formation. Stops are 13 pips above the cs formation, max 1% risk. Limits will be 10 pips inside the BF786.

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 for a long trade setup.  Place stop 10 pips below the low of the cs formation, max 1% risk, limits here will be at 9957.

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

GBP/USD 21 MAY 2012

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No trade setup on Sterling Friday.

FOR TODAY:

We can sell up at the 618/786 which is 150+ pips away after we get bearish reversal cs formations at either of those levels.

Long trade setups are considered on a test of the BF786 followed by bullish cs formations.

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 rally to the 618/786 of this swing and give us bearish reversal cs formations at either of these fibs. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at 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 need price to test the BF786 followed by a bullish cs formation for a long trade setup.  Stops will be 10 pips below the low of the cs formation, max 1% risk, limits defined at time of entry.

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

EUR/USD 21 MAY 2012

EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg

No trade setup on Friday, price rallied to take out the A high at 2758 starting a reversal on this timeframe.

FOR TODAY:

We now have to wait for a retracement to the 618/786 of this AB swing for a long trade setup.

Short trade setups are considered on a test of the BF, not an ideal setup at present.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We first need an established B swing high followed by a swing low and a test of the BF before we can consider short trade setups. We don’t have that at present so we will not be looking for shorts in today’s session.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We need a retracement down to the 618/786 of this AB swing, followed by bullish reversals at either of those levels. Stops will be 10 pips below the cs formation, max 1 % risk, limits defined at time of entry.

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

AUD/USD 21 MAY 2012

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

No trade setup on Aussie Friday. The Asian session has already had a BF setup which suggests a rally might ensue from here.

FOR TODAY:

We need price to rally to the 618/786 of this swing followed by a bearish cs formation for a short trade setup.

Since Asia has already given us a BF setup, a bullish cs formation from current levels or lower down will initiate a long trade setup.

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 the 618/786 of this AB swing and gives us a bearish cs formation at either of those levels. Stops are 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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

LONG: Will be going long today only IF:

With the test having already occurred, we are looking for a bullish cs formation for a long trade setup. Place stop 10 pips below the low of the cs formation, max 1% risk, limits defined at time of entry.

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

GBP/USD 17 MAY 2012

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

No trade setup on Sterling yesterday, but we have a B swing low in place at 5889.

FOR TODAY:

We can sell up at the 618/786 (which is 100+ pips away) after we get bearish reversal cs formations at either of those levels.

Long trade set-ups are considered on a test of the BF786 followed by bullish cs formations.

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 rally to the 618/786 of this swing and give us bearish reversal cs formations at either of these fibs. Place stop 13 pips above the high of the cs formation, max 1% risk. Limits defined at entry.

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 will need price to test the BF786 followed by a bullish cs formation for a long trade setup.  Stops will be 10 pips below the low of the cs formation, max 1% risk, limits defined at time of entry.

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