Key Technical Levels
Upside momentum is currently being capped by the 20-Day SMA at 0.9135 with the 38.2% Fibo of 0.8240-0.9327limiting downside risks. The solid levels will give scalpers targets for entering and exiting positions. Short-term AUD/USD price action has seen the pair develop tight channels with choppy price action creating rich scalping environments as developing trendlines provide short and long opportunities.
Quantitative Metrics
The AUD/USD has seen its ATR start to rise as the pair has seen a pickup in volatility as risk appetite has become sporadic. A daily range of 148 pips remains in line with other major pairs but at 1.63% of the spot price, it should be a concern. A narrowing Bollinger band speaks to their pairs recent range bound activity which is a bonus for scalpers. However, be aware that if the band becomes to thin a breakout may be imminent.
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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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