Why Scott Nations Is A Buyer Of US Dollar

On CNBC's "Futures Outlook," Scott Nations said the U.S. dollar is way oversold. It lost around 1% on Monday and it traded lower for seven days in a row and 11 days out of last 12 days. He expects the U.S. dollar to eventually return to the levels where it needs to be in relationship to the other currencies.

Nations wants to play for a bounce and he wants to buy the September contract in the Dollar Index at 92.75, with a stop loss at 92.45 and a target price at 93.75. He is risking $300 to make $1,000 with the trade, if he manages to catch those levels.