AUD/USD 8 MAY 2012

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

No trade set-up on Aussie yesterday. Price rallied but didn’t even reach the 382 of the AB swing.

FOR TODAY:

Price is in no man’s land (according to our system) on this pair. We need to wait for a retracement to the 618/786 of this new AB swing before we can consider shorts.

Long trade setups will be considered if price tests the BF786 and gives us 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; this is very far away at present.

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 give us a bullish cs formation for a long trade setup. Place stop 10 pips below the low of the cs formation, limits defined at time of entry.

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