The wheel fell of the wagon today after another round of disappointing data out of Asia. Friday could also prove to be interesting with the releases of GDP, Retail Sales and Industrial Production out of China. This data will most likely dictate price action over the next 24 hours. The AUDUSD and NZDUSD broke below major support levels on Thursday and any pullbacks could find sellers. If the CNY data proves to be stronger than expected we could see a retrace of today's decline. As always remember to keep your trades KEANE and play it sharp.
EURUSD SLOW GRIND LOWER
This pair has been in the slow lane on a one way road lower so far this week. At this point any pullback towards the trend line at 1.2250 could be considered a selling point. The cross is closing in on yearly price support at 1.2150. This level should put up a fight in the short-term. The recent Sell off in risk has been a product of weak data out of Asia. News will play a role once again this evening with the release of CNY GDP, Industrial Production and Retail Sales. This data could set the tone for a continuation or pullback of the current risk of environment.
Plan: Looking to sell on any pullback towards the trend line at 1.2250.
GBPUSD CAVED TO PEER PRESSURE
The GBPUSD finally decided to join the fun today and broke below key daily support at 1.5460 to test 1.54. A break of this level and we could see a move back towards the may lows at 1.5275. Resistance now begins at past support at 1.5460 followed by 1.5575. A pullback towards past support at 1.5460 could find new sellers.
Res 1.5460 1.5575
Plan: Waiting for a pullback and CNY Data.
AUDUSD DROPS WITH EMPLOYMENT
The AUDUSD was the star of the day. The cross started things of in Asian with disappointing employment, that combined with other negative data out of Asia over the past week produced a risk of cascade through European and North American trading. The pair broke below trend line support at 1.0220 and then daily support at 1.0160 to ultimately test the 1.01 level. Heading into Asian trading this evening China GDP, Retail Sales and Industrial Production is due. These reports will dictate the price action in this pair in the short-term. Resistance begins at 1.0160.
Sup 1.01 1.00
Plan: Any pullback towards 1.0160 could find sellers.
NZDUSD FOLLOWING BIG BROTHER LOWER
The NZDUSD did its best this week to stay above trend line support at .7930. The weight of negative news became too much after the release of a disappointing Employment report out of Australia. The cross broke below trend support at .7930 and never looked back. Support now begins with the day lows followed by the .382 fib from the May lows at .7840. Any pullback towards resistance could find seller.
USDCAD IN A CHANNEL
The USDCAD has been channeling higher for the majority of the month. The pair shot higher with risk today to test daily price resistance before quickly reversing track to challenge the bottom of trend line support. Support now begins at the trend line at 1.0190 followed by daily support at 1.0165. Resistance begins at 1.0250.
Sup 1.0190 1.0165
USDJPY CLOWN TO THE LEFT. JOKER TO THE RIGHT...STUCK IN THE MIDDLE
USDJPY has been busy over the last 24 hours. The pair managed to once again travel from one end of its range to other. The cross has been stuck between 80 and 79.10 since mid-June. The game plan at the moment is to play the range. As a note I have noticed over time that the USDJPY tends to break trends on Fridays. So keep your head on a swivel.