It was another rather nondescript day for the majors. The EURUSD and GBPUSD both bounced of the top of their ranges and the AUDUSD and NZDUSD consolidated their recent drops. All in All, not that much happened. Thing could roll for a bit on Wednesday in Asia, with the release of the AUDUSD GDP Report at 1:30 GMT. Economist are looking for a reading of 3.7%. A miss to the top or bottom, could spark a bit of movement in the AUD and NZD pairs. The price action should pick up towards the end of the week with the release of the ECB and BOE rate decisions on Thursday. Followed by the USD NFP report due Friday. As always, Keep your trades KEANE and play it safe.
EURUSD THE WALLS ARE CLOSING IN
The EURUSD has a full plat this week with economic news and Euro Crisis news on tap. This Thursday should be the boiling point with the ECB rate decision followed by the press conference where it is believed Draghi could announce a bond buying program to stabilize the Debt yields for Spain and Italy. In the meantime the EURUSD continues to trade in a rather narrow range. The pair appears to be in a triangle with the end game in view. The top of the triangle is created by the descending trend line from last October’s highs, which is now creating resistance around 1.2610. The bottom of the triangle is currently near 1.2435. A break of either of these level could lead to a measures move in either direction. Currently the pair is sitting on support at 1.2560 a break of this level exposes 1.2480.
Sup 1.2560 1.2480
Keane Plan…Watching Support at 1.2610 for a break or hold.
GBPUSD IT"S ALL ABOUT THE FIBS
The GBPUSD has had trouble gathering momentum higher over the last few weeks. The pair appears to have hit a wall at the .618 fib from May’s decline at 1.5905. The cross is currently in a wedge of sorts. The bottom of the wedge is created by the ascending trend line around 1.5850. The top of the wedge is at the .618 fib at 1.5904. A break of the bottom of the wedge exposes the 50 fib at 1.5782. On Thursday the Bank of England interest rate decision is due. The pair could consolidate between the Fibs until then.
Sup 1.5850 1.5782( 50 Fib )
Res 1.5904 (.618 Fib)
Keane Plan… Looking for consolidation between the fibs. A trend line break opens the 50 fib at 1.5782.
AUDUSD STUCK IN THE MIDDLE
The AUDUSD has managed to start the week on its back foot. The pair gaped lower On Sunday and is now sitting mid-range in between its current price levels. Support currently rest at 1.0175 and resistance starts at 1.0280, closely followed by 1.0320. Heading into Asian trading all eyes will be on the AUD GDP report due at 1:30 GMT. A better than expected reading could spark this pair out of its current slump.
Keane Plan….Mid-Range at the moment. Watching price action for hints.
NZDUSD LOOKING FOR SUPPORT
The NZDUSD continued its slow crawl lower once again Tuesday. The cross has now firmly broken below past support at .7970. A hold below this level exposes the pair to a larger move lower towards .79 followed by .78.
Sup .79 .78
Res .7970 .8035
Keane Plan…Looking for a bounce to short in to ahead of the fireworks at the end of the week.
USDCAD TESTING YEARLY SUPPORT
The USDCAD has been trading in a world of its own as of late. Correlations that have long connected the loonie seem to have fallen to the side. In the short-term the cross is resting near the bottom of its larger and current range between .9840 and .98. A break or hold of these levels will dictate the price action in September. Resistance begins at .9950.
Sup .9840 .98
Keane Plan… Watching the price action at support for a bounce higher.