Oliver Harvey, analyst at Deutsche Bank explained that the lack of trendiness persists in G10 with an average VHF standing at the 21st percentile. EUR/USD tops the technical scorecard in G10 space.
Key Quotes:
“The currency pair is highly trending to the topside with VHF at 94th percentile. It has smooth price action in terms of realized and implied volatility metrics and is the least stretched pair as per the RR measure, suggesting the move higher should be chased via options.”
“USD/CHF is the top trending pair with VHF at 97th percentile. However, the currency pair is stretched according to RSI measure and is highly volatile in terms of implied volatility, suggesting caution in chasing the trend.”
“Avoid USD/CAD and NZD/USD as the currencies are no longer trending, and GBP/USD due to the choppiness in the price action as measured by the volatility metrics.”
(Market News Provided by FXstreet)