Key Technical Levels
The EUR/USD has settled into a tight range between 1.4800 and 1.5000 over the past few weeks. The 50-Day SMA is also converging as a staunch long-term support level limiting downside risks. Conversely, the psychological barrier of 1.500 continues to remain as formidable resistance which we are seeing today as price action has started to consolidate following a failed test of the level.
Quantitative Metrics
The EUR/USD’s Bollinger band width of 369 pips and declining ATR isn’t the most attractive qualities for scalpers. However, the width has remained consistent as price action has ranged and the ATR only represents 0.97% of the spot price limiting its impact. Additionally, with the lowest implied volatility of the most active pairs at 8.7450 we can reasonably expect the current range to hold
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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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