AUD/USD 10 MAY 2012

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

No trade setup on Aussie yesterday. We were waiting for a decent B swing low to form which we now have.

FOR TODAY:

We need to wait for a retracement to the 618/786 of this new AB swing before we can consider shorts.

Long trades are only considered after dips followed by bullish cs formations since we have already had a BF786 bounce.

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. Limits defined later, stops are 13 pips above 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:

Since we have already bounced out of the BF786, we will look to buy after dips followed by bullish cs formations. Stops are placed 10 pips below the cs formation, max 1% risk, limits define at time of entry.

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