AUD/USD 14 MAY 2012

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

We exited the long trade setup on Friday with 14 pips profit- being flat into the weekend. Price fell to parity during the Asian session.

FOR TODAY:

We have a new AB swing in play with price having taken out the 1.0020 low during Asia. We now have to wait for a retracement to the 618/786 for a sell entry, longs are not considered today.

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 don’t have an established B swing low in place, so we cannot consider any long trade setups in today’s session.

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