FOREX ALERTS >>
DailyFX Plus Login

bio2

Article

EUR/GBP Failure at Resistance Provides Scalping Opportunity
Tuesday, 06 October 2009 18:26:25 GMT  |  John Rivera, Currency Analyst
Delicious
Facebook

On a day that we saw significant volatility with the RBA unexpectedly raising rates and its implications for the Asian Region it was difficult to settle on a pair to execute scalping strategies. However, the EUR/GBP’s failure at a major resistance levels has given way to ideal scalping price action as traders debate whether to take the pair higher.

Key Technical Levels

JR1006a

The EUR/GBP failed to break above resistance at 0.9268 for a second time which has led to the pair trading sideways. The 61.8% Fibo extension of the 0.9805-0.8400 decline is a level that is forcing traders to evaluate the Euro’s recent appreciation against the pound. While traders weigh fundamentals to determine if further bullish sentiment is justified price action has settled into a tight range of which high frequency traders can take advantage.

JR1006b

JR1006c

Quantitative Metrics

A widening Bollinger band width and rising ATR detract from EURGBP’s attractiveness as a prior for scalpers to target which makes the pair riskier then we would like. However, with volatility up across the board we will lean on other qualifications to determine a pair today.

JR1006d

JR1006e

Click For Additional Info On Scalping Strategies

To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com

More Articles

Feedback Form