The USD/CAD has continued to trade in a downward trending channel which provides solid support and resistance levels for trades to target. However, a break above or below could lead to an extended move which would increase the risks for high frequency traders.
Quantitative Metrics
A narrowing Bollinger band which currently stands at 413 pips adds to the attractiveness of the USD/CAD as a scalping target. Recent consolidation has seen its ATR trend lower to 91 pips which is near the bottom of the most traded pairs. Additionally, a one week implied volatility of 10.37% is in the lower range of the most traded pairs and a sign that current concentrated price action may continue. .
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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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