AUD/USD 25 JUNE 2012

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We have a B low at 1.0007, which is being tested at present, if it holds then we looking at a deeper retracement, if not, we have continuation of downtrend.

FOR TODAY:

We will buy if we get support from current levels, or a bounce out of 1.0000.

Shorts can be considered if we get failure at Fridays highs, or higher up at the 618/786.

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

SHORT: Will be going short only IF:

We get failure at Fridays highs, or higher up at 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. Aggressive traders can sell a break of the low, stops above Fridays highs, max 1 % risk.

A sustained break of 1.0223 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:

Price is at the B low, a bounce out of this level will be a long trade setup, watch out for a test of parity and a bounce as well. Limits here will be 70-80 pips since it’s a shallow bounce. 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.