The EURUSD has been in a 150 pip range over the past four days despite setting a new yearly high of 1.4652 as we have started to see volatility dissipate. The high liquidity and low spreads for the pair makes it ideal for intra-day strategies which traders should look to take advantage of in current conditions.
[B]Key Technical Levels[/B]
The EUR/USD is looking to finish the day for a second time in the last three virtually unchanged as it continues to hover around the 1.600 price level. We have seen volatility diminish post a stronger than expected U.S. retail sales figures. The less exaggerated price action will present an opportunity for traders looking to scalp profits especially considering the pair has settled into its current range between 1.4500-1.4650.
[B]Quantitative Metrics[/B]
The EURUSD has the third lowest ATR but it represents the lowest percentage of the current spot price increasing its attractiveness as a pair to target for high frequency trades. The pair also boasts the lowest implied volatility at 9.5675% and considering it just set a fresh yearly high we could be in store for a period of consolidation.
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[I]To discuss this report contact John Rivera, Currency Analyst: <[email protected]>[/I]