US Dollar Downtrend Likely To Continue
Dailyfx | Oct 21, 2013 10:36AM ET
- Dollar weakness looks likely to continue on extremely one-sided sentiment
- Extraordinarily low volatility and a high-flying S&P 500 likewise favors USD losses
- We like trading via our sentiment-based trading signals as they sell the US currency
On Friday we highlighted the and indeed we prefer using our sentiment-based trading strategies to trade the Dollar lower until further notice.
To summarize our arguments: extremely one-sided crowd sentiment, strong rallies in the US S&P 500 and other global equities and very low FX market volatility all favor weakness in the safe-haven US currency.
Forex Volatility Prices Continue to Tumble, Favoring Slow-Moving Markets
Source: OTC FX Options Prices from Bloomberg; DailyFX Calculations
Our trading preference thus remains with our trend-following Momentum2 trading strategy until further notice. It’s certainly possible that low-volatility conditions could mean that the US Dollar fails to hit further lows. Yet we likewise note that the decline.
Our strategy trading biases are listed in full detail in the table below.
DailyFX Individual Currency Pair Conditions and Trading Strategy Bias
-- by David Rodriguez, Quantitative Strategist for DailyFX.com
/h2
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.