An Out of Steam AUD/USD Creates Scalping Opportunity.Summary: The AUD/USD spiked to a new yearly high of 0.9091 following the surprise rate hike by the RBA RBA Rare Bird Alert RBA Reserve Bank of Australia RBA Run Book Automation RBA Rochester Business Alliance RBA Rights-Based Approach RBA Royal Brunei Airlines (ICAO code) RBA Relative Byte Address RBA relative binding affinity . Increasing optimism and prevailing risk appetite may keep... The AUD/USD spiked to a new yearly high of 0.9091 following the surprise rate hike by the RBA. Increasing optimism and prevailing risk appetite may keep the pair supported but a speculation that the U.S. may step up their timetable for tightening may leave the pair range bound over the near-term making it attractive for scalpers Scalpers A person trading in the equities or options and futures market who holds a position for a very short period of time, attempting to make money off of the bid-ask spread. .Key Technical Levels The break above 0.9000 has led to tight price action over the past few days which could be a sign that the pair may settle into defined range. We have seen over the past year that rally's have been followed by periods of consolidation as the AUD/USD has incrementally put together a period of prolonged appreciation. The break of such a significant psychological level and the sharpness of the recent rally increase the chances that a period of low volatility is ahead. Quantitative Metrics A widening Bollinger band Bollinger Band A band plotted two standard deviations away from a simple moving average.  and rising ATR ATR Achilles tendon reflex, see Ankle reflex are
negative signs for scalpers and should proceed with caution when trading
this pair. A Implied volatility Implied volatilityThe expected volatility in a stock's return derived from its option price, maturity date, exercise price, and riskless rate of return, using an option pricing model such as Black-Scholes. of 15.04 also detracts from its attractiveness which leaves depending on recent price action as the sole basis for selecting this pair. Click For Additional Info On Scalping scalping, taking the scalp of an enemy. The custom, comparable to head-hunting, was formerly practiced in Europe and Asia (Herodotus describes its practice by the Scythians, for example), but it is generally associated with North American natives, although many such Strategies To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com 2009 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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