Key Technical levels
The 20-Day SMA has held as support at 0.8871 with the 100-Day SMA at 90.71 offering potential resistance. The solid S/R level provides a comfortable range for high frequency traders to operate within. The current developing wedge has led to increased concentration for the pair creating an ideal scalping environment. However, such formations often give way to large breakouts which would significantly increase the potential risks.
Quantitative Metrics
An ATR of 119 pips is in the lower range of the most active pairs and increases the attractiveness of the AUD/USD as a scalping target. The daily range has held at current levels for the majority of the year and the consistency of it allows scalpers to time periods of consolidation following breakouts in price action. A narrowing Bollinger Band width of 442 pips is a product of recent consolidation as the pair continues to resist broader trends. However, a one week implied volatility of 13.88 is a concern and may be a sign of a potential breakout.
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