Chop, Chop, Chop...the markets have been chopping away for the majority of the week sooner or later the tree will fall. The GBPUSD, AUDUSD and USDCAD have been consolidating in a 50 pip range so far this week. A break above the top or bottom of these ranges is what the markets are looking for. Friday is the last day of the week and month and could provide the pop we are looking for. On Friday two data points of interest are due. The first is the Eurozone employment report followed by the CAD GDP report. As always remember to keep your trades KEANE and clean.
EURUSD BOTTOM OF THE RANGE TOP OF THE RANGE
Keane Plan….Play the range until it breaks…Which could be Friday.
Compared to the rest of the majors the EURUSD has traveled in a giant range so far this week. The cross has moved between support at 1.2885 and resistance between 1.30/1.3020. At the moment the only thing to do is play the range until it breaks. A break below the bottom of the range exposes 1.2820 followed by 1.2750. A push above the top of the range exposes 1.3020.
Sup 1.2885 1.2750
GBPUSD LEAVING THE BEST FRUIT ON THE TREE
Looking For a break of the Chop Zone between 1.60 and 1.6050
Chop, Chop, Chop goes the axe. Sooner or later the tree will fall. The pair has been circling about in a narrow 50 pip trading range for the majority of the week between 1.60 and 1.6050. The cross has stuck its head out here and there but has quickly resorted back to its comfort zone. A break of the chop to the upside exposes resistance around 1.6180. A push lower targets the 50 fib once again at 1.59.
AUDUSD BREAKS TREND LINE SUPPORT
KEANE PLAN....A hold below Trend Line support favor a move lower
The AUDUSD is attempting to finish the day below trend line and chop zone support at 1.0435. A break of this level could expose favors a push lower towards 1.0350 followed by 1.03. A push back into the chop zone favors further consolidation in the chop zone between 1.0485 and 1.0435.
Chop Zone 1.0435-1.0485
Sup 1.0350 1.03
NZDUSD THREE RIGHT MAKE A LEFT
Keane Plan….Looking for a break of the chop zone between .82 and .8270
This pair has traveled in a circle for the majority of the week. The pair is now right about where it started the week. The cross has managed to paint itself in a box between .82 and .8270. It will take a break of this range and maybe even the broader range between .83 and .82 to kick this pair out of its slumber. A push above .8270 finds resistance scattered between .83 and .8350. A break below .82 favors a move towards .81.
Chop Zone .82-.8270
USDCAD RIDING THE CHANNEL LOWER
Keane Plan…Waiting for a break of the chop zone between .9950/.99
The USDCAD has continued its slow and gradual trip across its downward channel this week. The pair is now roughly just about in the same place it started the week. Until the cross breaks out of its consolidation range between .9950 and .99 the only place to be is on the sidelines. A break of .9950 would represent a channel break and could lead to a push higher towards parity followed by the 50 fib at 1.0040. A break to the downside runs into support relatively quickly at .9870. Below that level a bigger drop could occur.
Res 1.00 1.0040( 50 Fib)
USDJPY CONSOLIDATING IN A TIGHT RANGE...COULD BE HEADING LOWER
Keane Plan….Looking for a move back towards .81
So far this week the USDJPY has been held up by support at 81.85. A break or hold of this level will be key for the remainder of the week. A break exposes support between 81 and 80.60. A hold and the cross could once again look for resistance at 83.20. I would favor a move back towards 81 to go long against. If Fiscal Cliff concerns persist the JPY pairs could go much lower as a safe haven play.
Sup 81.85 81/80.60