AUD/USD 1 JUNE 2012

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Price rallied to the 1.18 extention of the previous AB swing, giving us a new AB swing in play here.

FOR TODAY:

We can only sell up at the 618/786 of this swing after confirming cs formations.

We have a B low but it’s not an established B swing low as yet, so we don’t have the criteria for a long trade set-up in place as yet.

If we don’t get the set-up we are looking for then we don’t trade.

SHORT: Will be going short only IF:

We need price to rally and give us a bearish cs formation at the 618/786. This trend has been so strong that a clear cs formation even before the 618/786 will suffice, but it has to be after a rally and be a clear cs formation. Stops are placed 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 don’t have our system criteria setup for a long trade setup as yet. We will wait for an established B swing low first.

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