US Dollar Targets Fresh Highs as Forex Volatility Elevated

The US Dollar (ticker: USDOLLAR) continues to hit multi-year highs against the Euro and other counterparts. Risk of reversal is high as sentiment is extreme, but we favor buying US Dollar dips and selling EURUSD rallies. DailyFX Individual Currency Pair Conditions and Trading Strategy Bias forex_trading_forecast_market_conditions_body_Picture_1.png, DailyFX PLUS System Trading SignalsThe US Dollar (ticker: USDOLLAR) rally has thus far defied expectations in both speed and breadth, and a strong jump in forex options market volatility expectations suggests it could continue. Our volatility-driven “Breakout Opportunities” (Breakout2) trading signals system remains our favored strategy amidst such strong market moves. Indeed, this system has historically done well when our “Volatility Percentile” readings have hit above 75 percent. It is based on a Channel Breakout forex trading system, which according to our automated trading research stands to do well during active markets. Our research similarly shows that low-volatility range trading systems do poorly in such market conditions, and as such caution is advised. High volatility likewise favors specific currencies over others as we typically associate strong currency moves with investor fear. We specifically favor buying the …..

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