Forex options markets continue to price in substantial currency volatility, but extreme market choppiness makes it very difficult to establish firm strategy biases for the week ahead. Given especially large moves in the US Dollar and other key counterparts, we would expect that our volatility-friendly Breakout strategies would outperform significantly through recent price action. Yet the opposite has been true as major currencies switch direction at a moment’s notice—frustrating breakout traders. The week ahead promises to be similarly choppy, and we advise a great deal of caution on especially indecisive FX market conditions.

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Forex Strategy Outlook: US Dollar Likely to Remain Very Volatile