Key Technical Levels
The EUR/USD has seen staunch support from the 61.8% Fibonacci extension of 1.2444-1.5149 at 1.3487which is limiting downside risks. The pair has settled in for the most part a 200-pip range between 1.3450-1.3650 providing solid target levels to enter and exit positions. A descending 20-Day SMA at 1.3641 presents significant resistance as price action has remained below it since 1/15.
Quantitative Metrics
A rising ATR is a sign that daily volatility is increasing for the EUR/USD which has been a product of the Greece credit trouble/bailout news cycle. Sharp moves in price action are a red flag for scalpers looking to capture small profits in a stable environment. However, the Bollinger band width has narrowed to 4884 pips as the pair has been relatively confined to a 200 pip range providing an opportunity for those with a bit more risk appetite, but still desires a predictable pattern of price action.
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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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