AUD/USD 22 MAY 2012

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

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.