AUD/USD 29 MAY 2012

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Price gave us a bearish cs formation for a short trade setup, we went short but price came 3 pips shy of our limit, stops were moved to zero, and we were stopped out at zero.

FOR TODAY:

We are back testing the 786 of yesterday, we need to break this level to move higher and break 9934 to start the reversal on this timeframe. We will only have a reversal once price breaks 9934 on a closing basis.

We will look for short entries while inside the 9934 highs, be weary of bounces like we had overnight if we do get short entries.

Long trades will be considered on the bounces mentioned above, since we are expecting a correction on this pair we are looking for bulls to target the A high.

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 yesterday’s highs or higher up while inside the 9934 A high of this AB swing and gives us a clear bearish cs formation. Stops are 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:

We will use dips followed by bullish cs formations as long entries until price takes out 9934. We had one during the Asian session, we will wait and see if we get another. Limits set 10 pips inside the A high.

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