Key Technical Levels
The 38.2% Fibo level of 1.1724-1.0208 at 1.0786 has become a home for the USD/CAD with the pair gravitating around the level for the past five trading days. The period of consolidation provides an ideal environment for scalpers to employ their strategies. Additionally, a short-term upward trend is providing key support levels for traders to target for entering and exiting positions.
Quantitative Metrics
The USD/CAD has seen its ATR hold steady around 150 which provides comfort for scalpers that daily volatility will be limited. However, a Bollinger band width of 750 pips and an implied volatility of 16.75 are concerning. Increasing implied volatility numbers across the board warns of potential volatility and should be taken into consideration when placing trades.
Click For Additional Info On Scalping Strategies
To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
