NZD/USD 27 JULY 2012

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Price rallied to the 786 of this swing thus far.

FOR TODAY:

Today is a DA786 trading day where we will look for a test of yesterdays high, or even the A high followed by a clear bearish cs formation for a short trade setup, place stop 13 pips above the cs formation, max 1% risk, limits down at 7870

A sustained break of 8074 negates this view starts a reversal on this timeframe, resuming the uptrend.

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 look for a test of yesterdays high, or even the A high followed by a clear bearish cs formation for a short trade setup, place stop 13 pips above the cs formation, max 1% risk, limits down at 7870

A sustained break of 8074 negates this view starts a reversal on this timeframe, resuming the uptrend.

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 will consider buying a dip followed by a clear bullish cs formation, with a view to taking out the A high.

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