Key Technical Levels
The 200-Day SMA at 0.7013 has provided a solid level of support for the most part of March. We are also seeing the 50-Day SMA at 0.7031 and 20-Day SMA at 0.7027 converging. The broader range could limit the potential for a breakout reducing risks for high frequency traders. A short –term rising trend line is also providing a level to target for entering and exiting positions.
Quantitative Metrics
The NZD/USD has been range bound for the past two months which has led to its Bollinger Band Width narrowing to 259 pips which is the lowest of the most active pairs. The ATR has shrunk to 81 pips as the past few weeks have seen further consolidation. The low variation and volatility is ideal for executing scalping strategies. However, a one week implied volatility of 12.0825 could be a warning sign for a potential breakout.
To Discuss Scalping Strategies and Get Tips From Other Traders Visit The Scalping Forum.
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