Ahead of today's EU & UK flash PMI data, below is a quick snapshot of today's implied volatility support and resistance levels for GBPUSD, EURUSD, EURGBP, EURJPY, GBPCHF & GBPJPY.
EURUSD: 1.1700 (resistance) - 1.1600 (support)
EURGBP: 0.8680 (resistance) - 0.8630 (support)
EURJPY: 172.400 (resistance) - 170.900 (support)
GBPUSD: 1.3520 (resistance) - 1.3400 (support)
GBPCHF: 1.0850 (resistance) - 1.0760 (support)
GBPJPY: 199.00 (resistance) - 197.00 (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.
