Key Technical Levels
The 38.2% Fibo extension of the 1.1723-1.0203 decline is providing solid resistance and an ideal target level for high frequency traders. Short-term trend line support (1/19, 2/3 lows) has limited downside risks. The USD/CAD has started to settle into a 125 pip range with 1.0650 as the lower bound and 1.0775 as the upper.
Quantitative Metrics
A wide Bollinger band width of 683 pips for the USD/CAD is a product of the current bullish trend. A continuation of one way price action makes it difficult to use scalping strategies. Upward momentum has started to wane which has lowered the ATR to 108 pips which is one of the lowest amongst the most traded pairs. Also adding to the pair’s attractiveness is a one week implied volatility of 10.96-the second lowest of the pair’s listed below.
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