USD Strong Risk of Bounce
According to DailyFX.com, FX Options markets are ramping up bets on sharp price moves as we await key data out of the US and a European Central Bank interest rate decision. All the while, the Euro trades at critical price resistance at the confluence of its 200-day Simple Moving Average and key congestion near $1.3675.
Yet in broad terms we see a number of signs that the Dollar may remain in its larger range versus the Euro and other counterparts. While the DailyFX 1-week Volatility Index has risen noticeably, 3-month and 1-year indices continue near record lows. In other words: few are betting on a Dollar breakdown here.