Key Technical Levels
The 50-Day SMA at 0.7171 continues to provide support despite a brief break below to start the wee. The level has held since March, 16 and it may take a significant catalyst to push the pair below. The technical level and the current bearish trendline will provide scalpers with key levels to target for entering and exiting positions.
Quantitative Metrics
A widening Bollinger band and a rising ATR are red flags for traders and underline the level of volatility the pair has started to experience. Indeed,, the one-week implied volatility is at 19.48 which is the second highest of the pairs listed below. Overall, we have started to see evidence of potential breakouts as the major economies start to lose their correlation with each other as monetary policies start to diverge.
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To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com
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