The majors have slowly drifted lower throughout the New York trading today. The EURUSD has managed to break below the bottom of its current consolidation range between 1.30 and 1.2950. Now it will be seen if the cross can gain any momentum and push lower. The AUDUSD and GBPUSD are still trapped in narrow 50 pip trading ranges. Until these ranges break it will be difficult at best to trade these pairs. In early European trading Wednesday all eyes will be The EUR German CPI report. Expectations are for a reading of 1.9%. After that data flow is rather light until the release of the Fed Beige Book during North American trading. As always keep your trades KEANE and play is tight.
EURUSD Breaks Below Consolidation
The EURUSD managed to slide below the consolidation range between 1.30 and 1.2950 on Tuesday. A close below these lows favors a continued push lower. The first level of resistance is at 1.2885 followed by 1.2820. Resistance is still above between 1.30/1.3020.
Sup 1.2885 1.2820
Keane Plan… As long as the pair remains below the consolidation zone a continued move lower is favored.
GBPUSD ZOMBIE WALK
The GBPUSD has continued to slowly drift right across the computer monitor is a tight 50 pip range. Similar to the AUDUSD a break of the range between 1.6050 and 1.60 is needed to shack the pair out of its mindless walk. A break below 1.60 could open the cross up to a move back towards the 50 fib from the advance that started in August at 1.5903. A break to the topside favors a move towards the past resistance zone between 1.6205/1.6180.
Sup 1.60 1.59
Res 1.6050 1.6180/1.6205
AUDUSD RESISTANCE SCATTERED ABOVE
What to do. What to Do. The AUDUSD has been traveling in a relatively tight range since the beginning of the week. The pair has found resistance at 1.0485 and support at 1.0435. A break of these narrow ranges is required for the pair to have any meaningful movement. A break of the bottom of the range supports a move towards 1.0350. A break of the top of the range is a bit trickier with resistance resting just above at 1.0520 followed by trend line resistance at 1.0535.
Sup 1.0435 1.0350
Res 1.0485 1.0520/35
Keane Plan….Need a break of the range between 1.0485 and 1.0435 for any meaningful follow thru.
NZDUSD LOOKING TO BREAK LOWER
The NZDUSD has hovering near the .82 level since the beginning of trading this week. The cross attempted to push lower in New York trading but could not find the energy. The .82 level is the Bull/Bear line in the sand. A break back below .82 and a retest of .81 could be in the cards. A hold at this level favors a move back towards .83.
Keane Plan….Watching for a break or hold of .82
USDCAD CONSOLIDATION, CONSOLIDATION, CONSOLIDATION
The USDCAD is consolidating in a narrow range between .9950 and .99. The pair is still resting about mid-range in its descending channel. The cross could continue to consolidate until traveling across its channel to test the descending trend line. Until the range breaks the sideline may be the place to be in this pair.
Keane Plan…Sidelined at the moment.
USDJPY CONSOLIDATION IS STILL THE GAME
After its rapid advance from 79.50 the USDJPY has been consolidating its recent gains. Resistance now begins at 83.20. Support begins at 81.85, a break of this level would open the pairs up to a nice test of strong daily support between 80.60/81. Buyers could emerge around these levels.
Sup 81.85 81/80.60
Keane Plan….Would like to see a pullback towards 81. to consider going long into.