AUD/USD 28 MAY 2012

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

Price rallied past the 618 during the Asian session.

FOR TODAY:

Since price rallied past the 618, I would prefer a rally to the 786 before I consider short entries.

Long trade setups are only considered down at the BF786, far off for now.

We will have a reversal on this pair once price breaks 9934 on a closing basis.

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 786 of this AB swing and gives us a bearish cs formation. Stops are placed 13 pips above the cs formation, max 1% risk. Limits here 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:

Long trade entries are only considered down at the BF786, we will stand aside for now.

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