A disappointing NFP saw the dollar sell off very quickly before the greater forces at work stepped in putting a monster bid into the dollar, and breaking EUR/USD free from the summer range. Wait, a jobs number that missed by half rockets the dollar higher? As I always say, I'm glad I'm a technician. EUR/USD still has the 1.2575 support zone to contend with, so for now the clearer path to a stronger dollar looks to be in USD/CHF above 1.2625. A pair of 440 point measured moves line up with the daily .618 retracement at our target of 1.2735.

The 60-minute chart is just a different look at the 1.2625 break to 1.2714 Fib extension resistance, which is close enough to our daily Fib levels 20 points higher. I'm long a half from 1.2603 and will be stopping for another half at 1.2628 with stops for both just below the figure. Scale out on half of your position when your unrealized PnL equal your initial risk, and then keep the balance for the ride up above 1.2700.

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

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