Key Technical Levels
The 200- Day SMA at 0.6870 could prove as formidable support, limiting downside risks for the pair. The technical indicator is also converging with the 38.2% Fibo of 0.5487-0.7637 which reinforces the level potential. Current sideways range bound price action provides solid levels to target and creates the potential for profits while minimizing risks. However traders should be aware that a break below support could lead to a bearish breakout.
Quantitative Metrics
A wide Bollinger band width of 751 pips and a rising ATR are red flags for scalpers and an indication of the volatility the pair has been experiencing. At 102 pips the average true range is still one of the lowest which eases some concerns, but at 1.49% of the spot price it is still expensive. Additionally, a one week implied volatility reading of 15.17 is a major concern and limit the potential for the pair as a scalping target.
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