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- We’re watching key US Dollar trading opportunities in major FX pairs

- Forex volatility remains near record-lows, making a Dollar breakdown unlikely

- Until conditions change, we’re watching important trade setups

Record-low forex market volatility keeps us focused on tight trading ranges in the US Dollar, and indeed we’re looking to USD-buying opportunities as the Greenback trades near key support.

Our DailyFX Volatility Indices currently show that traders expect extremely slow moves in the week ahead, and without a shift in market expectations it seems very unlikely that major USD pairs will break wide ranges. Thus we continue to look for opportunities to range trade—buy near important support and sell significant resistance.

We highlighted the levels we’re watching in the USDJPY and continue to look for buying opportunities near ¥100.80 and selling opportunities closer to ¥102.30. The Euro remains a sell if price nears key resistance at $1.3650, and downside targets start at $1.3580. One wildcard remains the British Pound. It’s entirely possible that the GBP set an important top versus the US currency, but current reward/risk levels actually favor a long position against key support near $1.7000.

Forex Volatility Continues to Trade near Record Lows, Point to Tight Trading Ranges

US Dollar Trading Levels for the Week Ahead

Data source: Bloomberg, DailyFX Calculations

It’s admittedly unsatisfying to look for such small currency moves, and the temptation remains to trade for much larger trends. Yet you can’t force a shift in market conditions, and more importantly we see evidence that most traders tend to do well in these slow-moving markets.

See the table below for full rundown on a per-currency pair basis and keep track of changing conditions with future e-mail updates via my distribution list.

DailyFX Individual Currency Pair Conditions and Trading Strategy Bias

US Dollar Trading Levels for the Week Ahead

US Dollar Trading Levels for the Week Ahead

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