Key Technical Levels
A break above or below the current bounds of the developing wedge warn of a potential rally and gives scalpers an opportunity to take advantage of an extended move. The 100 and 50-Day SMA’s are also levels to watch at 1.0687 and 1.0543 respectively, as they have served as support and resistance over the past few days.
Quantitative Metrics
A narrowing Bollinger Band width increases the attractiveness of the USD/CAD as a pair for scalpers to target and at 241 pips it is one of the smallest differences of the most traded pairs. The declining average true range (ATR) is also an indicator that the pair is seeing decreasing volatility and at 1.26% of the spot price it decreases the potential risks. However, a one week implied volatility of 13.21 shows the potential for future activity, making its lifespan as a scalping target limited.
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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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