Forex options markets volatility forecasts continue to trend higher, pointing to major moves in the US Dollar and other major currencies through the coming weeks’ trade. In fact, implied volatility levels on 3-month Euro/US Dollar options now trade near their highest levels since July, 2009 and underline market fears of continued volatility. Given such robust expectations, we would like to position ourselves for volatility-friendly Breakout strategies and price-following Momentum trading systems.

US Dollar Extends its Run but How Long will Risk Aversion Hold?
Euro on the Ropes as Greece Debt Crisis Grows Contagious
Japanese Yen to Decline if Risk Recovery Lifts Carry Trades
British Pound May Remain Under Pressure As Yield Outlook Diminishes
Swiss Franc Forecast Dims on Persistent SNB Intervention
Canadian Dollar Maintains Channel Formation, May Test 200-Day SMA
Australian Dollar to Rebound if Stock Markets Correct Higher
New Zealand Dollar Suffers a Potentially Fatal Blow on Risk Collapse

It is difficult to forecast where the markets will be in a month or three months when volatility is as high as it is today. However, when measuring the quality of a trend; it is imperative to gauge the fundamentals that will carry the US dollar that far out to better ascertain the stability and duration of the incredible rally that the benchmark currency has carved out since the second half of January.

EURUSD – Euro Forecast to Depreciate vs US Dollar
GBPUSD – British Pound Outlook Strongly Bearish
USDJPY – Japanese Yen Trading Higher against US Dollar
USDCHF – Swiss Franc Forecast to Depreciate vs. USD
USDCAD – Canadian Dollar Likely to Weaken Further Against USD
GBPJPY – British Pound Forecast Very Bearish versus Japanese Yen

View individual currency SSI charts in our FX Sentiment section

Interested in building your own SSI-based strategy? Request SSI data on our forex forum.