All is all, it was a quiet day of trading In North America. The S&P moved higher but currencies found it hard to follow after Spain's credit rating was downgraded shortly after the European close. Heading into Asian trading we could see a much-needed relief rebound if risk continues to rally. The Economic docket is light tonight. The only news of significance is the AUD Retail Sales Report due at 1:30 GMT. Remember to Keep your trades KEANE and play it to win it.
EURUSD Hard to Catch a Falling Knife
The EURUSD proved once again on Tuesday that it is a tricky beast to trade recently. The pair appeared to be finding a bit of support in early New York trading only to push lower after Spain’s debt rating was lowered shortly after the European close. This pushed the pair through the 1.25/1.2480 support level. Heading into the New York close the cross is drifting around the 1.2480 area. If the pair continues its march lower the next support can be found at 1.2388. This level represents the 1.272 fib extension from the April highs. Resistance can still be found in the 1.26/1.2625 zone.
Sup 1.2480 1.2388
Plan: Standing aside at the moment. Looking for a bounce but hard to catch a falling knife.
The GBPUSD pushed lower today with the EURUSD after Spain’s credit rating was lowered. The cross briefly tested the March lows in the 1.56 area. Support can be found at 1.56 and resistance is up around 1.5715. Below 1.56 solid support isn’t apparent until the 1.54 zone. Any moves up past 1.5715 towards 1.5835 could find sellers.
Plan: Waiting for a bounce to short into. Any move past 1.5715 could produce a short squeeze.
The AUDUSD has been traveling in a narrow range over the last few days. Support can be found at .98 and resistance is up around .99. A break of .99 could lead to a pop higher.
The NZDUSD Appear to be in a wedge. The top of the wedge can found at .7650. A break of the level could push the price action towards .78. The bottom of the wedge is created by trend line and daily support around .7575. Over the last few days the cross has been traveling sideways similar to the AUDUSD.
Plan: Wait for a break of the wedge and then ride momentum.
USDCAD Comfortable at these Levels
The USDCAD has settled above 1.02. The cross doesn’t appear to be in much of a rush to go anywhere. Support can be found at 1.02 and resistance is at 1.03.
Plan: Play the range until it is broken.
The USDJPY has been trading in a narrowing range over the lat few days. It appears to be in a triangle on the 1 hr chart and could be ready to break out. the top of the triangle is at 79.50 and the bottom is around 79.35. A break to the top or bottom could lead to a test of either resistance at 80.15 or support at 79.
Sup 79.35 79
Res 79.55 80.15
Plan: Follow the triangle break looking for a run to either support or resistance