Key Technical Levels
The EUR/USD has stalled at 1.4500 which may serve as a major support level for the pair as it has remained above it since the October 2nd low of 1.4480. We could see the pair consolidate at this level as markets await the next catalyst which could be today’s Fed rate decision. However, the central bank is expected to remain on hold and maintain their stance that rates will remain low for the foreseeable future, increasing the possibility that the pair will continue to be an attractive scalping target.
Quantitative Metrics
A widening Bollinger band which has climbed to 714 pips is an indication of the recent volatility the pair has experienced and a red flags fro scalpers. The current ATR of 143 pips is one of the highest of the pair’s listed below but with it only accounting for 0.98% of the spot it isn’t alarming high. EUR/USD has steadily declined which keeps it valid as a scalping target. Additionally, a one week implied volatility of 10.30 is the second lowest of the majors signaling that a period of consolidation is possible.
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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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