- US Dollar posts large bearish outside week reversal on key week
- Evidence grows for a potentially significant EURUSD turnaround
- High volatility prices keep us focused on our Breakout2 trading strategy
Last week we saw the single-largest week of Euro trading volume in over three years as the pair posted a sharply positive reversal off of key lows. And further evidence suggests could be the start of a larger rally—particularly as crowd sentiment turns sharply.
All of this occurred on a sharp jump on FX volatility prices as traders speculated on and hedged against big Euro and US Dollar moves. Our DailyFX Volatility Indices show that vols have fallen since last week’s multi-month peak as event risk is comparatively limited in the week ahead. Yet volatility remains elevated on an absolute basis and remain supportive of views for further currency swings.
Forex Volatility Prices Pull Back but Remain Elevated as Uncertainty is High
Data source: Bloomberg, DailyFX Calculations
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