AUD/USD 4 JUNE 2012

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Price gave us a new B swing low down at 9580, so we have a new AB swing in play here.

FOR TODAY:

We can only sell up at the 618/786 of this swing after confirming cs formations.

Long trades are considered after a test of the BF786 followed by bullish cs formations.

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

SHORT: Will be going short only IF:

We need price to rally and give us a bearish cs formation at the 618/786. This trend has been so strong that a clear cs formation even before the 618/786 will suffice, but it has to be after a rally and be a clear cs formation. Stops are placed 13 pips above the cs formation, max 1% risk. Limits defined at time of entry.

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 need price to test the BF786 and then give us a bullish cs formation for a long trade setup. Place stop 10 pips below the cs formation, max 1% risk, limits defined at time of entry.

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