AUD/USD 22 JUNE 2012

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Price fell and took out the A support low starting the reversal process on this timeframe.

FOR TODAY:

We will look for short entries today, either from current levels or higher up.

Rallies will be used to establish short trades so we will not be looking to buy today.

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 a bearish cs formation from current levels where we have past support acting as resistance, or higher up at the 382/50, failing that we have the 618/786 higher up where we will look to establish short trades. Place stop 13 pips above the cs formation, max 1%, limits define later.

A sustained break of 1.0223 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:

Will not be trading long trade setups, if price rallies we will wait for a bearish cs formation for a short entry, thus using rallies to establish short trade setups.

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