The 50-Day SMA at 1.0491 has slowed the USD/CAD’s advance and with declining risk appetite and bullish crude data creating a stalemate, sideways price action may continue. A short-term range is developing between 1.0450 and 1.0525 and scalpers should target those levels when entering and exiting positions.
Quantitative Metrics
A narrowing Bollinger band width which currently stands at 385 pips adds to the attractiveness of the USD/CAD as a scalping target. Recent volatility has seen its ATR tick higher, but the longer-term trend is lower and at 100 it remains one of the lowest of the most traded pairs. A one week implied volatility of 11.16% is in the middle of the pairs listed below and could be a red flag pointing toward future volatility.
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