Key Technical Levels
The current rising trend line offers target levels for high frequency traders to enter and exit positions and a predictable pattern of price action. The 20-Day SMA at 124.22 cold slow gains creating a true scalping environment and another level to monitor. Meanwhile, the pair has solid support below which limit’s downside risks. Former consolidation at 120/122 in the beginning of the year is being repeated and could lead to an extended period of subdued price action.
Quantitative Metrics
A wide Bollinger band width of 682 pips is wider than a short-term trader would desire, but recent consolidation has seen it narrow which could be a sign of decreasing risks. At 181 pips the pair’s ATR is one of the highest of the most traded pair’s and a potential red flag. Subdued price action has the daily range trending in the right direction which eases some concerns for those targeting the pair.
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