AUD/USD 24 MAY 2012

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

Price gave us a new AB swing yesterday. We have retraced to the 382 of that swing thus far.

FOR TODAY:

We can only sell up at the 618/786 of this swing.

Long trades are considered once we test 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 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 need price to test the BF786 and then give us a bullish cs formation for a long entry. Place stops 10 pips below the low of the cs formation, max 1% risk, limits will be 70-80 pips.

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