The NZD/USD has continues to trade sideways after setting a new yearly high of 0.7313. After earlier volatility current price action has settled into a tight range increasing the pair’s attractiveness for scalping strategies.
[B]Key Technical Levels[/B]
The range of 0.7100 to 0.7250 has started to contain price action and give traders some solid entry and exit levels. Current price actions has tightened further into a 40 pip range which is ideal for high frequency traders looking to scalp 10-20 pips at a time. The pair is currently at a short-term support line which could limit downside risks, but a break could lead to an extended move lower.
[B]Quantitative Metrics[/B]
A wide Bollinger band width and an increasing ATR have cast some doubt on the NZDUSD’s potential for limited volatility. However, with an ATR of 100 bps it remains one of the lowest of the majors which makes it a solid candidate for scalping strategies.
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