The majors lost ground against the US dollar into the close of North American trading. This has left many pair in interesting positions heading into Thursday's. The first pair is of interest is the GBPUSD. The cross is resting just above trend line support at 1.5490. A break of this level would target 1.5410 and hold could see a retest of 1.56. The AUDUSD is in a similar situation resting on trend line support at .9925. Also keep an eye on the USDCAD. The pair broke above trend line support at 1.0275. A hold above this level could lead to a slow grind towards 1.0420. There is a bit of data in early European trading beginning with the CHF Rate Decision followed by the EUR CPI. As always keep your trades KEANE and play it safe.
EURUSD IN A RANGE
The EURUSD may be stuck in a range. The cross bounced at resistance 1.26 in New York Trading. Daily price support can be found at 1.2440. As long as the pair remains in this range playing the inside for scalps is the plan of action.
GBPUSD IN A WEDGE
The GBPUSD is a narrowing wedge. A break to the top or bottom is in the near future. The top of the wedge at 1.56 and the bottom is the trend line from the beginning of the month at around 1.5490. A break of the bottom and we could see a move towards 1.5410. A push through the top and the next stop could be the .382 fib from the May lows at 1.5661.
Sup 1.5490 1.5410
Res 1.56 1.5660
AUDUSD STOPPED BY TO VISIT PARITY AGAIN
The AUDUSD moved up to test parity once again today in New York. The cross could not maintain its gains and sold off aggressively into the close. A test of trend line support from the 1st of the month could be in the cards at .9925. The cross is going to break one way or the other in the near future. A push above parity and the 50 fib at 1.0027 could produce a move up to the 1.040 region. A break below the trend line will initially target support at .9850.
Sup .9925 .9850
RETRACED TO TREND LINE SUPPORT
The NZDUSD moved up to test .78 in New York today only to give up gains in late trading. Heading into Asian trading the NZD Reserve Rate Decision is due. The rate most likely will remain the same but the statement that follows could influence price action. A strong economic picture could lower expectations for rate cuts and we could see the pair rally higher. If the reserve bank paints a bleak picture we could see the cross move lower towards monthly lows. If we look at the price action we can see that resistance begins at .78 followed by the 50 Fib just above at .7844. A move up to this level could attract seller. Support begins near the low of the day at daily trend line support at .7735. A break of the trend line could lead to a measured move back to the .7650 region. This trend line has contained the pair since the beginning of the month.
Sup .7735 .7650
Res .78 .7844
USDCAD BREAKS TREND LINE RESISTANCE
The USDCAD waited around most of the day but made a move higher into the New York close. The cross break trend line resistance that has guided the pair lower throughout the week. Resistance can be found nearby at 1.0310 followed by 1.0360. Past trend line resistance is now support around 1.0275. A retest of trend line support could be a nice buying opportunity.
Res 1.0310 1.0360
Charts really don’t get easier to read than this. The USDJPY is stuck in a range. The top of the range is 79.80 and the bottom is 79.15. Play the range until it break.