The dollar has been trading in a fairly tight consolidation range for the last 4 months -- between 20.9 and 21.7. The dollar is now approaching critical support levels. Also note the technical, upside resistance the dollar faces in the form of three declining EMAs -- the 10, 20 and 50.
Later this week, Bernanke will be at Jackson Hole, where he will speak on Friday morning. I have no idea what he's going to say -- but the dollar appears to be anticipating another round of easing in one form or another. If these levels hold through Friday, I'd place stops below support.
