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.