US DOLLAR 31 JULY 2012

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

We still in the AB downswing on this chart, price is attempting to break the B low.

FOR TODAY:

We need to wait to see if price breaks the B low or pulls back into the swing. If we break then we will have a new AB swing in play. If price pulls back into the range then we looking for a retracement to the 618/786.

If we don’t get the set-up we are looking for then we don’t trade.

SHORT: Will be going short only IF:

We need price to retrace up to the 618/786 of this swing for a short trade setup, either this current swing, or the new one if price sustains the break of the B.

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

LONG: Will be going long today only IF:

No long trade setups at present.

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