AUD/USD 25 MAY 2012

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

No trade setup yesterday, price came 2 pips shy of the BF786 rallied and then found resistance at the 50.

FOR TODAY:

We can only sell up at the 618/786 of this swing, until then we wiat.

We will enter long trades after bullish cs formations since we have already bounced off the BF786 late in the US session yesterday.

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:

Since we have already had the BF786 tested yesterday, we now need a bullish cs formation before we can go long. Even a bullish cs formation after another stab at the lows would suffice. Place stops 10 pips below the low of the cs formation, max 1% risk, limits 9830.

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