Dollars thunders up, traders prepared for more strength

The U.S. Dollar has broken up, and the traders positioned themselves for a further strength. We prefer to buy the AUD against the USD, EUR, JPY and especially the CHF.

DailyFX PLUS System Trading Signals - What a week can make a difference. Last week we wrote that it could be a great week for the U.S. Dollar as markets decide whether the month of May would produce a dollar's strength or weakness.

The traders have spoken: the euro, Japanese yen, Australian dollar, Swiss franc and other major currencies are decided fallen back against the rising U.S. currency .

The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR ) trades at 3-year peaks.

On Friday we updated our Trading trend after the forex volatility rates increased, and in fact we still prefer to buy in general the strength of the U.S. dollar .

Perhaps the only important caveat is that we do not know how long the safe haven USD may reach new highs as the S & P 500 is trading at record highs. But there is no natural law that says that the dollar will fall with a rise in shares must , and our fundamental forecast sees a strength of the greenback ahead.

1-month volatility rates of the major currencies against the JPY pairs

Source: OTC FX option prices from Bloomberg calculations DailyFX

In terms of trading strategies, we prefer our courses with higher volatility volatility-friendly Breakout2 trading system, as well as our trendverfolgende Momentum2 strategy.

Last week we wrote that Range2 trades appeared charming but slow market movements, but the circumstances have changed, and we must adapt to much more active conditions.

With regard to the individual currency pairs we continue to focus on the AUD / USD breaks below key support , and a possible substantial fraction higher in USD / CHF . The Japanese Yen once again shows signs of life against the U.S. dollar and other currencies, but you have to remember that the increase in volatility in the last week focused on non-JPY pairs.

Take a look at the table below to view our selection strategy ordered by currency pair to see.

DailyFX Individual Currency Pair Conditions and Trading Strategy Trend

Look at yourself, how a high-volatility Breakout2 automated trading system by reading our previous article and to view our webinar recording.

Do you trade the reversals trading Momentum2 system automatically via our previous article and the recording of the webinar .