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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY
- US Dollar nears critical technical levels versus Euro, other counterparts

- A sharp drop in forex volatility prices nonetheless points to slower currency moves ahead

- Our trading bias has shifted away from high-volatility systems with several key exceptions

The US Dollar and Euro might see slower price action in the week ahead, but what could change that? More importantly what trade setups are worth watching?

Last week’s sharply disappointing US Nonfarm Payrolls data left the US Dollar noticeably weaker across the board and through key price levels. Our Senior Technical Strategist highlights why several key USD levels will be critical to watch—particularly versus the Euro and British Pound.

Yet it’s important to note that FX volatility prices have fallen noticeably; with the key exception of British Pound economic event risk and some potential Fed-linked Dollar moves we see little reason to watch for major currency shifts. Absent a breakout in key pairs and change in market conditions, we’ll position ourselves for slower-moving markets.

We recently favored high-volatility trading strategies and our proprietary Breakout2 trading system. Yet the broader shift in market expectations pulls focus towards other systems. The trend-following Momentum2 remains attractive more generally with the important exception of some range-bound USD pairs.

We’ll keep a close eye on the British Pound, US Dollar, and other key currencies and post any up-to-the-minute updates via our forex real time news feed. Take a look at full strategy preferences below and sign up for future e-mail updates via my distribution list.

Forex Volatility Prices Have Fallen Sharply Ahead of What May be a Quiet Week for FX Markets

forex_trading_US_Dollar_Euro_and_British_Pound_Forecast_body_Picture_1.png, Dollar Near Important Levels versus Euro, GBP. How are we Trading?Source: OTC FX Options Prices from Bloomberg; DailyFX Calculations

DailyFX Individual Currency Pair Conditions and Trading Strategy Bias

forex_trading_US_Dollar_Euro_and_British_Pound_Forecast_body_Picture_2.png, Dollar Near Important Levels versus Euro, GBP. How are we Trading?forex_trading_US_Dollar_Euro_and_British_Pound_Forecast_body_Picture_3.png, Dollar Near Important Levels versus Euro, GBP. How are we Trading?Automate our SSI-based trading strategies via Mirror Trader free of charge

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