The US Dollar is once again threatening to break key lows against major forex counterparts, and short-term forecasts favor further losses. Yet as we pointed out earlier this week, we believe that the pace of US Dollar gains is likely to slow—not completely turn around. Indeed, we maintain that the Greenback has likely set its 2009 lows against the Euro and other key pairs, and the currency is likely to continue gaining on an unwind of overextended forex positioning. Through the very short-term, however, traders should be wary of strong volatility. Our contrarian forex positioning indicators signals short-term dollar losses are likely, but critical US Nonfarm Payrolls data on the horizon promises no shortage of volatility.
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.
