NZD/USD 19 JUNE 2012

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Price fell and bounced during the US session. We are the highs of the AB swing.

FOR TODAY:

We need price to retrace to either yesterdays lows or lower down to the 618/786 followed by a bullish cs formation for a long trade setup.

Shorts are considered on a clear bearish cs formation since price has already tested 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 short a clear bearish cs formation since the test has already been fulfilled.

A sustained break of 7943 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 need a retracement down to yesterdays lows, or lower down to the 618/786 of this swing followed by 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.