AUD/USD 20 JUNE 2012

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Price rallied through the B high yesterday and seems to have given us a new B high at 1.0200.

FOR TODAY:

We need a retracement down to the 618/786 of this swing followed by a bullish cs formation for a long trade set-up.

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 50-60 pips.

A sustained break of 1.0200 negates this view and opens the upside for a rally higher towards 1.0390.

If we don’t get the set-up 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 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.