AUD/USD 17 MAY 2012

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

No trade setup on Aussie yesterday. Price gave us a swing low and rallied to the 618 of the AB swing.

FOR TODAY:

We will wait for another test of the 618 followed by a bearish cs formation for a short trade setup, this will be a DD entry and will be good for 100 pips. Else higher up at the 786 – if we get a bearish cs formation there it will qualify as a short entry.

Long trades are 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:

We get another clear bearish cs formation before the 618 – this will be a DD entry – good for 100 pip fall. Else higher at 9983 we have a 786 – bearish cs formations at this level will initiate a short trade. Stops are 13 pips above the cs formation, max 1% risk. 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:

We will need price to test the BF786 and then give us 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.