Thursday, 21 February 2013

AUD/USD 21 FEBRUARY 2013



As per post yesterday, we exited the long position and reversed with the bearish confirmation at the BF86. This cs formation gave us heads up that price was going to fall down to the 1.0259 area. We now have to wait to see if price takes out the A low and resumes the downtrend, or if the low holds and price rallies to take out the B high. The short trade was exited as per the post as well. 

We have reached our monthly target for February.
  
Will be going long if:
Price is currently at the A low area. We need to wait for bullish confirmation that the low is likely to hold. A bullish cs formation will provide this confirmation for a long entry. Keep stops tight. If we do get the long entry, limits will be 100 pips or the BF, whichever comes first. As per the time of writing (06h00 GMT), we have a bullish cs formation on the 1h chart which qualifies as a long entry. Stop below the low, max 1% risk - Limits 1.0244.

Will be going short if:
No short entries from current levels. We will wait for a bearish cs formation if it presents itself after a BF786 print. Probably not in today’s session.

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