Key Technical Levels
The 100-Day SMA at 0.9069 is formidable resistance as price action has traded below the technical level since 1/21. The 20-Day SMA at 0.8896 is providing support which has helped limit volatility for the pair.
Quantitative Metrics
A Bollinger band width of 498 pips for the AUD/USD puts it in the middle of the most active pairs and is wide enough for it to be a concern for scalpers. The pair has been in a longer-term range but we have seen three extended rallies since the end of last year, and the one-way price increases the level of risk. The pair’s ATR has been trending lower and at 116 pips is also in the middle of the pairs listed below. The one week implied volatility for the pair stands at 12.46 which is higher than desired but the trend is in the right direction as it is down from 14.33 on Monday.
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