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.