- Overnight Interest Rate Update 03.22.10 Mon, 22 Mar 2010 04:17 GMT
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scalping report
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- Mar, 19 EUR/GBP’s Developing Range Presents Scalping Opportunity
- Mar, 18 GBP/USD Channel Presents Scalping Opportunity
- Mar, 17 EUR/JPY Becomes Scalping Target with Technical Convergence
- Mar, 15 USD/CHF Test of Major Support Present’s Scalping Opportunity
- Mar, 11 USD/JPY’s Converging SMA’s Generating Ideal Scalping Environment
- Mar, 10 USD/CAD Channel Presents Scalping Opportunity
- Mar, 09 NZD/USD Channel Presents Scalping Opportunity
- Mar, 08 EUR/JPY Consolidation Presents Scalping Opportunity
- Mar, 04 USD/JPY Could Present Scalping Opportunity Ahead Of Non-Farm Payrolls
- Mar, 03 A Channel Bound AUD/USD Creates Scalping Opportunity
- Mar, 02 EUR/USD Becomes Scalping Target Ahead of ECB Decision
- Mar, 01 GBP/USD Test of Support Creates Scalping Target
- Feb, 26 A Developing Wedge Makes AUD/USD A Scalping Target
- Feb, 25 USD/JPY’s Test Of Major Support Could Present Scalping Opportunity
- Feb, 24 GBP/USD Consolidation Presents Scalping Opportunity
- Feb, 23 EUR/USD Present Scalping Opportunity Post German IFO Volatility
- Feb, 22 A Consolidating EUR/JPY Provides Scalping Opportunity
- Feb, 12 GBP/JPY’s Rising Trend Channel Is Ideal Scalping Environment
- Feb, 11 AUD/USD’s Test of Resistance Presents Scalping Opportunity
- Feb, 10 EUR/JPY’s Test of Support Presents Scalping Opportunity
The New Zealand dollar has started to see support wane as ending government stimulus has raised concerns over global growth. China’s central bank raised its reserve requirement for banks by 50 bps as it looks to prevent a credit bubble. Although, NZD/USD isn’t facing any significant technical resistance level, its current bullish rally has started to wane, leading to a period of consolidation that has prevailed this entire week creating an ideal scalping environment. We could see “kiwi” weakness ahead if risk appetite continues to falter, especially since interest rate exceptions for the antipode aren’t as high as its Australian cousin.
Key Technical Levels
The NZD/USD has remained in a narrow 50 pip range with 0.7370 and 0.7430 providing solid entry and exit levels for scalpers to target. The 11/16 high of 0.7521 is the next significant resistance level and could limit some upside risks with 0.7290 as a possible support level. A break of either of the current range’s bounds should be a warning sign for traders as it could lead to an extended move.
Quantitative Metrics
A widening Bollinger band which currently stands at 589 pips is a concern for high frequency traders as it speaks to the current bullish trend. One way price action isn’t ideal for scalping strategies. However, the recent consolidation has seen its ATR turned lower to 91 pips which is near the bottom of the most traded pairs. Yet, with the daily range accounting for 1.22% of the spot price it is riskier than it appears.
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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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