GBP/USD 29 JUNE 2012

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Price broke the B low in yesterday’s trade, then railed to take out the A high in the last hour doing a bullish reversal on this timeframe again. We are now having to wait for a B high to form.

FOR TODAY:

No trades considered until we have an established B high in place.

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

SHORT: Will be going short only IF:

No short setups, we don’t have an established B high in place.

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

LONG: Will be going long today only IF:

No trade setup, we don’t have an established B high in place.

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

EUR/USD 29 JUNE 2012

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2400 proves to be a touch level to break with lots of support, price bounced hard out of there overnight. Technically we have broken the A support low, so we are technically reversing on this timeframe, but I would watch out for 2746 coming under pressure, maybe not today since its rallied substantially already.

FOR TODAY:

Price is at the 618 of the downswing on this pair, we should be selling bearish cs formations from current levels, or higher up at the 786.

Long trade setups will be 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 ONLY BE GOING SHORT IF:

Short trades can be considered after a clear bearish cs formation, especially since price rallied more that 170 pips during the Asian session, we might consolidate a bit here or pull back before resuming a test of 2746.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We are expecting price to extend towards 2746, but we don’t have a long entry according to the system, we have to wait for a pullback to the BF786 followed by a bullish cs formation.

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

AUD/USD 29 JUNE 2012

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Price fell to the 786 yesterday and gave us a bullish cs formation, but outside our trading hours. Price has since rallied and taken out the B high confirming the uptrend on this timeframe.

FOR TODAY:

We have to wait for a new B high to form before we can do anything. So no trade setups.

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

SHORT: Will be going short only IF:

No trade set-up, we don’t have an established B high in place as yet.

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

LONG: Will be going long today only IF:

No trade set-up, we don’t have an established B high in place as yet.

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

NZD/USD 29 JUNE 2012

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Price gave us a bearish cs formation at the 618 yesterday and then found support at the B low. It has since rallied to the 86 of the swing.

FOR TODAY:

We are in sell territory, a bearish cs formation from current levels or while inside the 8015 high will initiate a short trade setup.

Long trades are only considered lower down after a BF786 test.

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 a bearish cs formation from current levels, or while inside the 8015 high, this will initiate a short trade setup.  Place stops 13 pips above the cs formation, max 1 % risk. Limits should be at the BF786 over coming sessions.

A sustained break of 8015 gives us a bullish reverse on this timeframe, and negates this view.

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

LONG: Will be going long today only IF:

Because of the bounce out of the low yesterday, and with price already having reached the 86, we can only enter long trades after a test of the BF786, which is much lower down.

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

GBP/USD 28 JUNE 2012

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Price tested the B low yesterday and gave us the bullish cs formation we were waiting for.

FOR TODAY:

The bounce out of the B low yesterday indicates that we heading for 5680 over coming sessions. Buy after dips followed by bullish cs formations to add to current positions until 5680.

Shorts are considered higher up at the 618/786 after bearish 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 trades are considered higher up at the 786 of this swing. We will need a really clear bearish cs formation at the 618 to consider a short since its close to the 5650 break. Look for 786 to offer resistance rather.

A sustained break of 5777 opens the upside again.

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

LONG: Will be going long today only IF:

Buying after a dip followed by a bullish cs formation will be the preferred strategy. We look for price to extend towards 5720 over coming sessions. Place stops 10 pips below the cs formation, limits at 5715.

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

EUR/USD 28 JUNE 2012

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Price tested the 2441 lows again in the US session yesterday and bounced off the low and then proceeded to rally in the Asian session. Today we look for price to extend towards 2530/80.

FOR TODAY:

With the test of 2441 yesterday followed by the bounce, today we will be looking for dips followed by bullish cs formations for long trade setups towards the B high over coming days.

Shorts will only be considered on a sustained break of the A low, where we will start a reversal on this time-frame.

Price has NOT reversed on this timeframe as yet, we need a sustained break of 2442 to start the reversal on this time-frame.

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

SHORT: WILL ONLY BE GOING SHORT IF:

I will not be considering short trade setups today; the bounce out of support indicates that price is heading towards the B high over coming days. Use the dips to buy into long positions.

A sustained break of 2440 negates this view.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Today we are looking for price to extend, we are looking to buy after dips followed by bullish cs formations. We need a break of 2530, then 2580 to open the upside towards the B high. Place stops 10 pips below the cs formation. Limits will be up at 2730 over coming sessions.

Only a sustained break of 2442 starts a reversal on this time-frame.

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

AUD/USD 28 JUNE 2012

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The A high has been broken indicating a bullish reversal on this time frame. The target of 1.0126 has been reached overnight.

FOR TODAY:

Buying after dips followed by bullish cs formations will be the proffered strategy on Aussie. We look for the bulls to now target the 1.0168, maybe even 1.0223.

Shorts will not be considered until we get higher up to the 786 area.

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

SHORT: Will be going short only IF:

Will not be considering short trade setups at present. The bullish bounce out of 1.0011 indicates a move higher. Bearish moves should be used to add to long positions.

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

LONG: Will be going long today only IF:

Buying after dips followed by a clear bullish cs formation will be the preferred strategy today since we are looking for price to head higher. 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.

NZD/USD 28 JUNE 2012

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Price has reached 7950 during the Asian session as per analysis. Next resistance is up at 7980/8015.

FOR TODAY:

Today we will look for resumption of the rally to test 7980.We will look to buy after a dip and a bullish cs formation.

Shorts are considered if we get failure after hitting the 786 higher up, or while inside the A high

If we don’t get the set-up we are looking for then we don’t trade.

SHORT: Will be going short only IF:

We need a bearish cs formation after hitting the 786 which will initiate a short trade setup.  Place stops 13 pips above the cs formation, max 1 % risk.

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

LONG: Will be going long today only IF:

A dip followed by a bullish cs formation will initiate a long trade setup. Limits here can be around 7970/8000, Stops will be 10 pips below the cs formation.

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

GBP/USD 27 JUNE 2012

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Price took out the 5634 high but then pulled back,. The US rally tested the highs again without taking it out. Today we will look for price to continue up.

FOR TODAY:

We need 5650 to break on a sustained basis to open the upside. We expect price to retrace and maybe even test the US lows before resuming the rally. Look to buy after dips followed by bullish sc formations.

Shorts are considered higher up at the 618/786 after bearish 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 trades are considered higher up at the 786 of this swing. We will need a really clear bearish cs formation at the 618 to consider a short since its close to the 5650 break. Look for 786 to offer resiatnce rather.

A sustained break of 5777 opens the upside again.

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

LONG: Will be going long today only IF:

Buying after a dip followed by a bullish cs formation will be the preferred strategy. We look for price to extend towards 5720 over coming sessions. Place stops 10 pips below the cs formation, limits at 5715.

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

EUR/USD 27 JUNE 2012

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Price stalled at 2441 yesterday at the A low support. This bounce indicates that price will be heading towards the B high over coming days.

FOR TODAY:

With the A low bounce yesterday, today we will be looking for dips followed by bullish cs formations for along trade setups towards the B high over coming days.

Shorts will only be considered on a sustained break of the A low, where we will start a reversal on this time frame.

Price has NOT reversed on this timeframe as yet, we need a sustained break of 2442 to start the reversal on this timeframe.

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

SHORT: WILL ONLY BE GOING SHORT IF:

I will not be considering short trade setups today, the bounce out of support indicates that price is heading towards the B high over coming days. Use the dips to buy into long positions.

A sustained break of 2440 negates this view.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Today is a DAAL trading day where we are looking for price to extend, we are looking to buy after dips followed by bullish cs formations. We expect price to test yesterday’s lows probably as low as 2474/55 before resuming the rally towards 2530 onto 2585. We need a break of 2585 to open the upside towards the B high. Place stops 10 pips below the cs formation. Limits will be up at 2730 over coming sessions/days.

Only a sustained break of 2442 starts a reversal on this time frame and negates this view.

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

AUD/USD 27 JUNE 2012

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Price gave us the bearish cs formation yesterday which failed for a loss of 40 pips. Price went on to rally to break the A high but not on a closing basis. Today we look to resumption of rally.

FOR TODAY:

Buying after dips followed by bullish cs formations will be the preferred strategy on Aussie. We look for the bulls to target the 1.0083 highs, maybe onto 1.0126.

Shorts will not be considered until we get higher up to the 1.0150 area.

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

SHORT: Will be going short only IF:

Will not be considering short trade setups at present. Yesterdays bullish bounce out of 1.0011 indicates a move higher. Bearish moves should be used to add to long positions.

A sustained break of 1.0076/83 will start a bullish reversal on this timeframe.

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

LONG: Will be going long today only IF:

Buying after dips followed by a clear bullish cs formation will be the preferred strategy today since we are looking for price to head higher. We can expect a test of yesterdays lows before we rally. 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.

NZD/USD 27 JUNE 2012

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Price rallied to the 50 of the downswing yesterday and fell back. We look for resumption of this rally towards 7950/80.

FOR TODAY:

Today we will look for resumption of the rally to test 7950/80.We will look to buy after a dip and a bullish cs formation.

Shorts are considered if we get failure after hitting the 786 higher up.

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 a bearish cs formation after hitting the 786 which will initiate a short trade setup.  Place stops 13 pips above the cs formation, max 1 % risk.

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

LONG: Will be going long today only IF:

A dip followed by a bullish cs formation will initiate a long trade setup. Limits here can be around 7970, Stops will be 10 pips below the cs formation.

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

GBP/USD 26 JUNE 2012

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We now have a B low at 5538. We waited yesterday for this swing to form.

FOR TODAY:

We will look for resistance up at 5630/50, failing that, higher up circa 5725.

Long trades are considered after a BF786 test followed by a bullish cs formation.

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

SHORT: Will be going short only IF:

We will look to sell a bearish cs circa 5630/50– past support becoming resistance/ Fridays high, or higher up at the 618/786 of this swing. Place stop 13 pips above cs formation, max 1% risk, limits defined at time of entry.

A sustained break of 5777 opens the upside again.

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 a test of the BF786 followed by a bullish cs formation for a long trade setup. Trade this for 70-80 pips since it’s a shallow bounce, stops are 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.

EUR/USD 26 JUNE 2012

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Price has found support off the 2470 lows, a break of 2523 will take pressure off the downside.

FOR TODAY:

Price seems to have bounced off the 86 of the AB swing. We are looking for a rally towards 2600 onto 2680 over coming sessions.

Short trades are considered at Fridays high, or circa 2680 after bearish cs formations.

Price has NOT reversed on this timeframe as yet, we need a sustained break of 2442 to start the reversal on this time-frame. Its still in its up-trend on this time-frame.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need a test and failure at Fridays highs for a short entry, else higher up circa 2680.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Today is a DA86 trading day where we are looking for price to extend, we are looking to buy after dips followed by bullish cs formations. Place stops 10 pips below the cs formation. Limits will be up at 2670 over coming sessions.

Only a sustained break of 2442 starts a reversal on this timeframe.

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

AUD/USD 26 JUNE 2012

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Price took out the B yesterday low giving us a new AB swing.

FOR TODAY:

We can only buy after a test of the BF786 followed by a clear bullish cs formation.

Shorts can be considered if we get a clear bearish cs formation from current levels since we have already hit the 618, else higher up at the 786.

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

SHORT: Will be going short only IF:

Price has already rallied to the 618, if we get a clear bearish cs formation from current levels it will initiate a short trade setup, else we look higher up to the 786 for bearish cs formations. Place stop 13 pips above the cs formation, max 1%, limits define later.

A sustained break of 1.0076 will start a bullish reversal on this timeframe.

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 a test of the BF786 followed by a clear bullish cs formation for a long trade setup.  Limits here will be 1.0053. 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.

NZD/USD 26 JUNE 2012

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Price bounced out of the B low late yesterday into the Asian session.

FOR TODAY:

Today we will look for resumption of the rally to test 7918, a break here will open up 7930/50. We will look to buy after a dip and a bullish cs formation.

Shorts are considered if we get failure circa 7918 which will be considered a DD entry.

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 failure circa 7918 which will be a DD entry, good for a 100 pip fall, else higher up at the 618/786 of this swing. Place stops 13 pips above the cs formation, max 1 % risk.

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

LONG: Will be going long today only IF:

A dip followed by a bullish cs formation will initiate a long trade setup. Limits here will be 50-60 pips since it’s a shallow bounce, Stops will be 10 pips below the cs formation.

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

GBP/USD 25 JUNE 2012

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The B low shifted on Friday to 5556, price has consolidated during the Asian session

FOR TODAY:

We will look for resistance up at 5630/50, failing that, higher up at circa 5730

Long trades are considered after a BF786 test followed by a bullish cs formation.

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

SHORT: Will be going short only IF:

We will look to sell a bearish cs circa 5630/50– past support becoming resistance, or higher up at 5690 – 618 and round number, failing this we have a 786 at 5729. Place stop 13 pips above cs formation, max 1% risk, limits defined at time of entry.

A sustained break of 5777 opens the upside again.

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 a test of the BF786 followed by a bullish cs formation for a long trade setup. Trade this for 70-80 pips since it’s a shallow bounce, stops are 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.

EUR/USD 25 JUNE 2012

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Price consolidated on Friday, not having tested the 786 as yet.

FOR TODAY:

We are still looking for a test of the 786 down at 2507. We cannot rule out a rally on this chart after price tests the 786.

Short trade setups are considered after failure at Fridays highs or higher up circa 2700.

Price has NOT reversed on this timeframe as yet, we need a sustained break of 2442 to start the reversal on this timeframe.

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

SHORT: WILL ONLY BE GOING SHORT IF:

Risk /reward ratio doesn’t warrant a short from these levels -2529 06h30GMT- since we have a 786 down at 2507. We need a test and failure at Fridays highs for a short entry, else higher up circa 2700.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Bullish cs formations after price hits the 786 will initiate long trade setups. Place stops 10 pips below the cs formation. Limits defined if set-up occurs.

Only a sustained break of 2442 starts a reversal on this timeframe.

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

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.

NZD/USD 25 JUNE 2012

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Price gave us a 382 bounce on Friday, testing the BF786 during the Asian session.

FOR TODAY:

We will look for bullish cs formations since price already tested the BF during the Asian session.

Short trades are considered if we get failure at Friday’s high, or higher up at the 618/786 of this swing.

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 a failure at Fridays highs for a short entry, else higher up at the 618/786 of this swing.

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

LONG: Will be going long today only IF:

A bullish cs formation from current levels or while inside 7846 will initiate a long trade setup. Limits here will be 60-70 pips since it’s a shallow bounce, Stops will be 10 pips below the cs formation.

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

GBP/USD 22 JUNE 2012

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Price broke the A support low, thereby not making higher lows anymore and starting the reversal process on this timeframe.

FOR TODAY:

We will look to sell after a rally followed by a bearish cs formation.

Will not be looking to trade long trades, but using them to establish short entries.

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

SHORT: Will be going short only IF:

We will look to sell a bearish cs from current levels – past support becoming resistance,  or higher up at 5650 –past support becoming resistance and a 382, or higher up at 5700 – 618 and round number, failing this we have a 786 at 5734. Place stop 13 pips above cs formation, max 1% risk, limits defined at time of entry.

A sustained break of 5777 opens the upside again.

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

LONG: Will be going long today only IF:

Rallies will be used to establish short entries since we have broken support and started a reversal on this timeframe.

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

EUR/USD 22 JUNE 2012

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Price failed again yesterday just shy of 2700 and fell to take out the 618 of the AB swing. We expect price to head for 2510, maybe after a pullback before we fall.

FOR TODAY:

Today will be a DABF786 trading day where we are looking for price to extend the fall towards 2510 where we have 786 support. We will look to sell after a rally followed by a bearish cs formation.

Long entries are only considered once price reaches the 786, where after a bullish cs formation we will look for a long entry setup

Price has NOT reversed on this timeframe as yet, we need a sustained break of 2442 to start the reversal on this timeframe.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We will ideally look for a rally followed by a bearish cs formation telling us that the bears are driving prices lower. Initial targets here will be 2510, expect a bounce at 2510/00, but bears will be targeting 2442 to start the reversal on this timeframe.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Rallies will be used as selling opportunities, so we will not be attempting long trades, we expect price to fall towards 2500/2442 over coming sessions.

Only a sustained break of 2442 starts a reversal on this timeframe.

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

AUD/USD 22 JUNE 2012

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Price fell and took out the A support low starting the reversal process on this timeframe.

FOR TODAY:

We will look for short entries today, either from current levels or higher up.

Rallies will be used to establish short trades so we will not be looking to buy today.

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

SHORT: Will be going short only IF:

We will look for a bearish cs formation from current levels where we have past support acting as resistance, or higher up at the 382/50, failing that we have 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.

A sustained break of 1.0223 negates this view and opens the upside for a rally higher towards 1.0390.

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

LONG: Will be going long today only IF:

Will not be trading long trade setups, if price rallies we will wait for a bearish cs formation for a short entry, thus using rallies to establish short trade setups.

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

NZD/USD 22 JUNE 2012

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Kiwi fell aggressively yesterday taking out both support levels staring the reversal process on this timeframe.

FOR TODAY:

We will look to sell after bearish cs formations either from current levels, or higher up.

Will not be trading long trades today, but using them to establish short entries.

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

SHORT: Will be going short only IF:

A bearish cs formation from current levels will suffice as a short entry since we have past support acting as resistance at this level, or higher up at the 382.

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

LONG: Will be going long today only IF:

Use rallies to establish short trade setups since we are reversing here on this timeframe.

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

GBP/USD 21 JUNE 2012

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Price broke the B high giving us a new AB swing, and retraced to bounce off the 786.

FOR TODAY:

We will look to buy after a bullish cs formation if price finds support at current levels, or lower down at the 786.

Short trades are only considered higher up after rallies to test the B high.

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

SHORT: Will be going short only IF:

We will consider short trade setups if price tests the BF786 followed by a clear bearish cs formation. Place stop 13 pips above the cs formation, max 1% risk. Limits will be 70-80 pips.

A sustained break of 5777 opens the upside again.

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 will look for yesterday’s lows to hold, we will look for bullish cs formations from current levels or lower down at yesterday’s lows to contain the fall, we will consider buying after bullish cs formations at these levels. Place stop 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.

EUR/USD 21 JUNE 2012

EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg

Price rallied but failed to take out the 2746 high yesterday. We need a sustained break of this high to continue up.

FOR TODAY:

Today we will wait to see if we get another run at the highs, failure again there will probably send price deeper into the AB swing.

We will look to buy after dips followed by bullish cs formations, supports are at yesterday’s lows – 2636, then lower down at 2568/56.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We will need price to rally to test the highs again followed by a bearish cs formation telling us that the bears are driving prices lower.

A sustained break of 2746 negates this view and opens the upside.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

We will wait to see if price gives us a dip followed by a clear bullish cs formation for a long trade setup. Trade this for 80-100 pips with stops 10 pips below the cs formation.

Only a break of 2442 starts a reversal on this timeframe.

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

AUD/USD 21 JUNE 2012

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

Price rallied through the B high yesterday and seems to have given us a new B high at 1.0223.

FOR TODAY:

We will look for a test of yesterday’s lows, or lower down at the 618/786 of this swing followed by a bullish cs formation for a long trade setup.

Shorts are considered only after a test of the BF786.

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 a rally to test the BF786 followed by  a clear bearish cs for a short trade setup. Place stop 13 pips above the cs formation, max 1% risk.

A sustained break of 1.0223 negates this view and opens the upside for a rally higher towards 1.0390.

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

LONG: Will be going long today only IF:

Price is close to yesterday’s lows, we will wait to see if the low holds. If we get a bullish cs formation we will enter a long trade setup, else we have a 618/786 lower down – we will look for support at these levels. Place stops 10 pips below the cs formation, max 1% risk. Limits define at time of entry.

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

NZD/USD 21 JUNE 2012

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

Price rallied overnight and gave us a new AB swing and bounced off the 618 since.

FOR TODAY:

We already have a bullish cs formation for a long entry.

Shorts are considered on a clear bearish cs formation after a test of the BF786.

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

SHORT: Will be going short only IF:

We will need price to rally to test the BF786 followed by a bearish cs formation for a short trade setup.

A sustained break of 8015 negates this view and opens the upside to further rallies.

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 already have a long trade setup on this pair. Place stop 10 pips below the low of the cs formation, max 1 % risk. Limits here can be at 8050, unless we have failure at the B high.

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