Directly from Vladimir Ribakov's Live Trading Room
We have two possible scenarios to look for here. Lets start off with the possible Bearish scenario, if we look to the Daily chart we can see that price is playing around 1.0815 and looks to be creating a possible double top here. What we want to see is a false break here that is price closes above 1.0815 and then immediately closes back below 1.0815 and creating some sort of Bearish candle pattern. Classically we want to see either a Engulfing pattern or an inverted Hammer. If we get this scenario with the cross down of the Stochastic indicator for extra confirmation that will be our sell signal and that should open the doors to 1.0616 and possibly 1.040. Pay attention how the RSI indicator holds the divergence line. The next scenario is a Bullish scenario and here we are looking for price to close , hold and retest the 1.0815 but not close below. If we get this price action than that will be our buy signal and we will be aiming 1.1040 area.
AUDUSD trade setup for February 29, 2012
AUD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3