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- Mar, 11 USD/JPY’s Converging SMA’s Generating Ideal Scalping Environment
- Mar, 10 USD/CAD Channel Presents Scalping Opportunity
- Mar, 09 NZD/USD Channel Presents Scalping Opportunity
- Mar, 08 EUR/JPY Consolidation Presents Scalping Opportunity
- Mar, 04 USD/JPY Could Present Scalping Opportunity Ahead Of Non-Farm Payrolls
- Mar, 03 A Channel Bound AUD/USD Creates Scalping Opportunity
- Mar, 02 EUR/USD Becomes Scalping Target Ahead of ECB Decision
- Mar, 01 GBP/USD Test of Support Creates Scalping Target
- Feb, 26 A Developing Wedge Makes AUD/USD A Scalping Target
- Feb, 25 USD/JPY’s Test Of Major Support Could Present Scalping Opportunity
- Feb, 24 GBP/USD Consolidation Presents Scalping Opportunity
- Feb, 23 EUR/USD Present Scalping Opportunity Post German IFO Volatility
- Feb, 22 A Consolidating EUR/JPY Provides Scalping Opportunity
- Feb, 12 GBP/JPY’s Rising Trend Channel Is Ideal Scalping Environment
- Feb, 11 AUD/USD’s Test of Resistance Presents Scalping Opportunity
- Feb, 10 EUR/JPY’s Test of Support Presents Scalping Opportunity
- Feb, 09 Solid S/R Levels Makes USD/CAD Scalping Target
- Feb, 05 A Channel Bound AUD/NZD presents Scalping Opportunity
- Feb, 04 A Range Pound EUR/GBP presents Scalping Opportunity
- Feb, 03 EUR/USD Presents Scalping Opportunity Ahead Of ECB Decision
Risk trends have quieted a bit following last week’s extreme volatility on the back of European sovereign credit concerns. Several European officials over the past few days have come out to talk up their country’s stability and ease concerns over mounting budget deficits. The NZD/USD has seen its losses slowed by solid support and in the current environment may create a scalping opportunity.
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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To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com
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