US DOLLAR 12 JULY 2012

USDOLLAR - follow me on twitter @fxdailyforecast and stocktwits.com/fxg

Price bounced yesterday just after taking out the previous day’s lows, we are currently at the resistance highs again. A sustained break here opens the upside to dollar rallies.

FOR TODAY:

A clear bearish rejection while inside 10.193 will initiate a short trade setup. A sustained break of 10.193 will open the upside and give us a new AB swing.

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 be looking for a clear bearish cs formation telling us we’re heading lower down.

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 can consider a long position if price finds support at yesterday’s lows.  A sustained break of 10.193 however opens the upside and gives us a new AB swing.

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