AUD/USD 19 JUNE 2012

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We are still hanging onto the B high with price not having closed above it yet.

FOR TODAY:

We need a retracement down to yesterdays lows followed by a bullish cs formation, else lower down at the 618/786 of this swing followed by a bullish cs formation for a long trade setup.

Price has already tested the BF786, we just need a clear bearish cs formation for a short trade setup.

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

SHORT: Will be going short only IF:

We are looking for a clear bearish cs formation from current levels for a short trade setup. Place stop 13 pips above the cs formation, max 1% risk, limits 70-80 pips.

A sustained break of 1.0141 negates this view and opens the upside for a rally higher towards 1.0390.

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 wait for a retracement down to test yesterdays lows, or lower down at the 618/786 of this AB swing followed by a bullish cs formation for a long trade setup. Place stops 10 pips below the cs formation, max 1% risk. Limits define at time of entry.

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