I'm watching this DXC 85.50 support level with great interest. The trendline support, as well as the pair of Fibonacci retracement levels, dials in our target support zone down to 85.42-49. Technically speaking, this dollar weakness could simply be a deep retracement in the course of the longer-term uptrend.

We have been watching USD/JPY 117.50 support, but the additional selling pressure from a heavy EUR/JPY has proved to be too much for USD/JPY to handle. While the Yen continues to come under such buying pressure, we're better off looking elsewhere for dollar buying opportunities.

USD/CHF is showing remarkable Fib zone support from 1.2440-1.2480. The three Fib ratios forming the support zone are clearly labeled on the chart. Longs could be established between 1.2455-1.2475 with stops under 1.2440. Keep in mind this is larger buy zone and stop that normal, so position size accordingly.

Or, if USD/CHF continues to move higher from the initial test of Fib support zone on the 1.2470 low, don't chase price into channel resistance. Trying to buy a break like is that best way to get stopped in a real hurry. Rather, let price show you it has the juice to get through 1.2520 resistance, then look for price to top out around 1.2540, followed then by a retracement to the breakout point of the 1.2500-10 to get long. So in other words, wait for 1.2520, and then 1.2540 to trade, then bid just above 1.2500 on the retracement with stops below 1.2480. Targets will remain open on this one for now.

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

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