Key Technical Levels
The 38.2% Fibo of 1.2325-1.5141 at 1.4066 is a staunch support level and one that could generate a period of consolidation. We are also seeing support from 1.4006-7/29 low. Currently we are seeing a downward trending channel on a five minute chart providing solid entry and exit target levels.
Quantitative Metrics
The EUR/USD’s widening Bollinger Band width of 488 pips speaks to recent volatility and is a red flag for scalpers. The pair’s ATR has also remained elevated at 132 pips but at 0.93% of the current spot, it remains the cheapest of the most traded pairs. Also, with one of the lowest one week implied volatility readings at 10.7%, potential exists for future consolidation.
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