The dollar is teetering on the border of a full-blown breakdown. Levels, such as 1.2400 in USDCHF, are the last obstacle in the way. Considering how technically significant this level is, I believe the market will not make it as easy on us as simply selling a breakdown of the lows. The initial rejection of 1.2400 support into 1.2450 resistance will be our trigger. Look to get short between 1.2440-50 tonight with stops not closer than 25 points. Don't be afraid to book partials on a re-test of the lows, because I have a feeling they might need to try these lows a few times before they are gone for good. I apologize for the short report tonight, but I'm fighting the flu, while at the same time getting ready for the next level of the CMT (Chartered Market Technician) exam tomorrow. Another fun-filled night of regression analysis.

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

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