It was an interesting week of trading in the majors. Low volume levels created erratic price movements and pushed a few pairs away from normal correlations. The AUDUSD, USDCAD closed near their highs of the weeks while the USDNZD finished up around its lows. The EURUSD and GBPUSD also followed their own paths last week. Heading into next week the USDCAD will be in the spotlight after closing below daily and channel support on Friday. As will the GBPUSD closing above the .382 fib at 1.5660. A hold above this level could expose the 1.5782 level. News flow is slow starting the week. So low volume levels may continue to prevail. As always remember to keep your trades KEANE and play it safe.
EURUSD BOUNCES AT SUPPORT
The news flow out of Europe was rather slow last week. Draghi remained out of the spotlight most of the week as the Germain Bundsbank and Merkel questioned ECB bond purchases as a viable plan. The pair did manage to slip below strong channel support at 1.2330 to create weekly low below at 1.2240. Currently the pair is sitting midrange Price action at support and resistance level should dictate early week moves.
Keane Insight: Waiting for a break or hold at sup and res levels.
GBPUSD THE PRICE DOES THE TALKING
The GBPUSD has established an interesting trading plan over the last few weeks. The pair has a tendency to slowly drift lower and then suddenly squeeze violently higher. Throughout the week the pair created higher lows and higher highs. The pair finished the week above the .382 fib from the May lows at 1.5660. The price action to start the week will be telling. A hold above this level could expose the cross to a test of the 50 fib at 1.5782. A bounce back below 1.5660 could lead to a test towards 1.56.
Keane Insight: Watching the 1.5660 level into the start of the week.
AUDUSD STILL TESTING CHANNEL HIGHS
The AUDUSD finished the week relatively unchanged after creating weekly lows in early trading Friday. Heading into next week trend line resistance rest around 1.0630 and support is down at 1.05. Until proven otherwise buying dips is the plan.
Keane Insight: buy the dips until proven wrong
NZDUSD BOUNCES AT WEEKLY LOWS
The NZDUSD started the week near its highs and drifted lower throughout. The pair found a bit of support with the bounce in risk Friday. As long as the pair remains above .8060 a test of .8235 could still be in the cards. A break of .8060 could expose .80.
Keane Insight: Buying the dips until .8060 is broken
USDCAD BREAKS BELOW CHANNEL SUPPORT
The USDCAD continued its slide lower last week. The cross tried to bounce at strong daily support from a weekly ascending trend line but could not gain momentum into the weekend. The pair finished the week Friday with a close below channel and daily support. Until the pair pulls back a bit shorting at these levels would be risky. Any pullback could find sellers.
Keane Insight: A pullback towards parity could find sellers
USDJPY RANGE IS KING
The range continues. The USDJPY maintained a tight range between 78.70 and 78 once again last week. It appeared that the pair was poised to break higher heading into Friday before dropping towards the lows of the week into the close Friday. Until the range breaks the only thing to do is to play the inside.
Keane Insight: The range is your friend until it breaks.