Below is a quick snapshot of today’s implied volatility support and resistance levels for EURUSD, USDJPY and GBPUSD.
EURUSD: 1.17600 (resistance) – 1.16600 (support)
USDJPY: 148.00 (resistance) – 146.400 (support)
GBPUSD: 1.36100 (resistance) – 1.3500 (support)
These
levels are based on 1-month implied volatility and can be used as dynamic and
market-based levels of support and resistance.
These
levels on their own are quite handy, but when we combine them with technical
analysis tools like pivot points, or fibs, or psychological levels, you can
identify potential entry, take profit, or stop-loss levels with more increased
confidence.
What’s unique about using implied volatility is that it provides a
totally objective and data-dependent price range to complement your subjective
technical analysis.
This article was written by Arno V Venter at investinglive.com.
