The dollar is coming off its fourth attempt in the last 30 days to break through 86.00 DXC resistance. Non-farm payrolls is less than 24 hours away and interestingly the as-expected September NFP was the piece of data that put the 84.70 triple bottom low in the DXC, which then setup the run up to the quadruple test of 86.00. So it's conceivable that the pending dollar breakout, in either direction, is on hold until Friday morning's data is on the table.

When the dollar does in fact break for good, we are targeting the initial EUR/USD support of 1.2575. But first, we need to clear the 1.2650 mine field that has minimized the EUR/USD volatility.

For now, let's continue to favor a stronger dollar, as gold is down almost 5% in two days, and US equities and bonds are in rally mode. There is a nice measured move down to.618 retracement on the USD/CHF 5-minute chart. Put your stops just below 1.2460 and look to tighten up your stops if 1.2520 trades.

We were stopped on our dollar shorts last night as traders continue to slosh dollars around in this tight range.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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