Key Technical Levels
The 50.0% Fibo level of 118.82-163.03 looms as staunch support at 140.95 and a test of the technical level could lead to a period of consolidation as we have seen on a prior occasion. However, traders must be aware that a bearish breakout or a bullish reversal are also possible scenarios.
Quantitative Metrics
A widening Bollinger Band width and a rising ATR are major red flags for scalpers and speak of the recent volatility the pair has seen. A one week implied volatility reading of 17.90 is the highest of the pairs listed below. Therefore, the pair may be a risky target following the pending event risk.
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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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