Thursday, 12 July 2012

NZD/USD 12 JULY 2012


NZD/USD - follow me on twitter @fxdailyforecast and stocktwits.com/fxg
Price bounced off the 618 again yesterday but then failed to rally significantly off it, just breaking the previous day’s highs and falling back - we are back in that area again at present. We need a break of yesterday’s highs to open the upside towards the BF786, or a sustained break of the 618 to open the downside.

FOR TODAY:
We will look to see if we get support from this level, or if price will break the lows and head for the 786 lower down. Shorts are not considered at present.

A sustained break of 7839 starts the reversal process on this timeframe.

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 set-ups according to the system, we don’t have the requirements in place, we need a test of the BF786 higher up.

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:
We will look for a clear bullish cs formation for a long entry. Limits here will be 50-60 pips. Stops will be 10 pips below the low of the cs formation, max 1% risk. If 7928 breaks then we look for support down at the 786.

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

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