AUD/USD 6 JUNE 2012

AUD/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg

There was a short trade setup which we took yesterday, exited for 31 pips profit. Price has since rallied to the 86 of the AB swing.

FOR TODAY:

We are seeking a lower top on this pair. We have a bearish cs formation at the 86 of this AB swing which is a short entry set-up.
A sustained break of 9896 negates this view and starts a reversal on this time-frame.

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:

Short entry has been triggered (06H00 GMT) with the bearish cs formation at the 86 of this AB swing. Stops are placed 13 pips above the cs formation, max 1% risk. Limits are down at 9653 over coming sessions.

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 – far away at present - 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.