By Michael Boutros, Currency Strategist The greenback is stronger at the close of North American trade with the Dow Jones FXCM Dollar Index(Ticker:USDOLLAR)advancing 0.37% on the session after moving nearly 99% of its daily average true range. The advance comes despite broad gains in the equity markets with socks making their highs early in the session before paring gains to close well off session highs. Stronger than expected ISM manufacturing data ahead of the open topped estimates with a print of 54.8, versus expectations for a read of 53.0. The data helped support a rally in stocks that saw the Dow test levels not seen since December of 2007. The rally faded just an hour ahead of the close however with the Dow, the S&P, and NASDAQ closing higher by 0.50%, 0.57%, and 0.13% respectively.The dollar continues to trade within the confines of a descending channel formation dating back to the March highs with the index breaking back above the 50% Fibonacci extension taken from the August 1st and October 27th troughs at 9850 before closing jus higher at 9863. Daily topside resistance stands at 9900 backed by the 61.8% extension at 9945 and channel resistance. Key daily support continues to rest with the 200-day moving average at 9813 backed by the confluence of channel support and the 9800 support level. An hourly chart shows the index holding within the confines of a newly adjusted descending channel formation with the greenback closing just below soft resistance at 9880. Subsequent topside intra-day targets are eyed at 9900 with a breach above channel resistance eyeing the 61.8% extension at 9945. Interim support rests at 9850 backed by 9825 and 9800. Note that hourly RSI has now moved into overbought territory for the first time since April 16th and suggests further gains for the greenback in the days to come. While today’s advance marks the first day of the month and bodes well for the greenback, we look to tomorrow when European markets come back online. We remain neutral in the meantime pending a topside break of this descending channel formation.