NZD/USD 14 JUNE 2012

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Price bounced at the 618 overnight, we need a test of the BF786 before we can sell.

FOR TODAY:

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

A sustained break of 7809 negates this view and opens the upside.

Long trades are considered at the 618 which will be considered a DD entry or lower down at the 786 after 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 will short after a test of the BF786 followed by bearish cs formations. Place stops 13 pips above the cs formation, max 1% risk. Limits down at 7710.

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 618 again which will be a DD entry, usually good for 100 pip rally, else lower down at the 786, both entries only after we get confirming bullish cs formations. Place stop 10 pips below the low of 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.