The dollar's stellar performance from Friday has not carried through yet this week and shown the signs that a healthy breakout would normally display. I would expect to see EUR/USD below 1.2550, and USD/CHF above 1.2650, before the NY open, or else we need to be cautious with the opinion the dollar is breaking out to the topside.

Some of you might have taken USD/CHF long home over the weekend, and if so, do your best to watching the Asian open for signs of failure. If you start to see hesitation at the 1.2650 resistance, don't be afraid to hit the eject button, because the dollar could setting us for a nasty head fake.

The other reason I'm starting to get cold feet with a higher dollar is the EUR/USD chart is showing incredible amount of price symmetry below that could easily reverse price back to the pre-NFP levels. EUR/USD is putting in the second 350 point push down into .786 retracement just above the critical 1.2550 level.

Within that large pair of 350 point price legs, is a smaller pair of 190 point symmetrical price legs shown in orange that points to support at 1.2574. So we have a larger AB=CD support level at 1.2580, smaller AB=CD support level at 1.2574, and daily .786 retracement at 1.2561. So, if you see the hesitation here, along with USD/CHF at 1.2650 , exit your long dollar positions and look to nibble at the shorts on the hunch this breakout is a just a setup.

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

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The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.