Key Technical Levels
Support at 1.3802-50.0% Fibo of 1.2444-1.5149 has held once and a second failed test could lead to an extended period of consolidation. Last time the pair traded at current levels it settled not a month long range which add significance to its potential as a barrier for further losses. .
Quantitative Metrics
A widening Bollinger band width is a concerning factor when considering the EUR/USD as a scalping target. A resumption of the bearish trend after a period of consolidation has led to one-way price action detracting from the pair’s attractiveness. However, we are seeing the intra-day volatility quiet which is conducive for using a high frequency strategy. Additionally, a one week implied volatility of 9.995 is a signal that condensed price action may continue.
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