AUD/USD 21 MAY 2012

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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.