AUD/USD 13 JUNE 2012

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

No trade setup on Aussie yesterday.

FOR TODAY:

We need price to test the BF786 followed by a bearish cs formation for short entries. A sustained break of 1.0007 will negate this view and opens the upside.

Long trades are considered lower down  circa 9850. If these don’t offer support we have the 618/786 lower down.

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

SHORT: Will be going short only IF:

We will look for price to test the BF786 followed by a clear bearish cs formation for a short entry. Trade this for 60-70 pips. Stop will be 13 pips above the cs formation, max 1% risk.

A sustained break of 1.0007 negates this view and opens the upside.

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 look for a test of the 9850 low followed by a clear bullish cs formation. This qualifies as a DD entry and should be good for 100 pip rally. Else lower down at the 618/786 we will look Place stops 10 pips below the cs formation, max 1% risk.

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