Jim Iurio's Dollar Trade

On CNBC's "Futures Now", Jim Iurio recommended a long position in the U.S. dollar index. He believes the U.S. is moving toward a tax plan and he sees a recent move higher in euro as overly optimistic.

He said the U.S. dollar index has been in a consolidation range for two weeks and he expects it to trade higher. It backed off the 95 level Tuesday, so he thinks it won't trade higher immediately and it should take a little bit time for the trade to move in the right direction.

If the U.S. dollar index trades to 95.08, Iurio is going to buy it. He has a price target of 95.68 and he is going to place a stop loss at $94.78. Iurio could make $600, if the dollar index moves in the right direction. If his stop loss gets hit, he is going to lose $300.