Daily Close….Next Weeks Trading Plan
Most of the majors finished the day at their lows against the dollar. This should create an interesting open to next week. The majority of the data throughout the week painted the economic condition of the global markets in a dark light. Greece is flirting with a Euro zone exit, the spanish banking system in disarray and China appears to be slowing down. Not all of the news was pessimistic, the CAD and AUD employments were pleasant surprises. Heading into next week I will be focusing on the AUDUSD and GBPUSD. The AUDUSD closed at its lows of the day slightly below daily support at 1.0020. Depending on the news from over the weekend we could see a bounce from this level early next week. The GBPUSD is resting just above its 50 Fib from April highs at 1.6050. This level could produce solid support. That is it for this week, everyone have a great weekend and remember to keep your trades KEANE.
EURUSD The Gap Never Filled.
The EURUSD started the week with a bang due to concerns of election results in Greece and France. Towards the end of Tuesday trading in the pair settled down and consolidation was the name of the game. Most data coming out if Europe is bleak at the moment with Greece threatening to leave the Eurozone and Spanish unemployment and banking defaults clouding the picture. Heading into next week the focus will be on the 1.29/1.2860 support zone. If this level gives there isn’t much technically stopping the pair until 1.2625. I would expect a bounce a some point for this pair and resistance begins at 1.2980 followed by 1.3060. It should also be pointed out the gap never filled from last Sundays decline.
Res 1.2980 1.3060
GBPUSD Searching for the 50 FIB
The GBPUSD continued its slow crawl lower this week. The cross has been more resilient than the commodity currencies and the Euro, but the negative global news has been weighing on the pair. The 50 fib from the April highs at 1.6052 should provide solid support for the GBPUSD. The 1.6050 level is also significant daily price support. A move below this and the pair would run into the trend line that has guided price action so far this year. Resistance begins at 1.6180.
AUDUSD Finishing the Week on its lows
The AUDUSD has been on the fast train lower. Parity is just around the corner. The pair ended the week at its lows and on significant price support at 1.0020. A hold or break of this level heading into next week will dictate Monday’s price action. A break of this level and we could see a move down to .9890 region.
Sup 1.0020 .9890
NZDUSD Stuck in a Range
While the sky has been falling else where, the NZDUSD stood its ground for the majority of the week. I don’t believe this had much to do with NZD strength rather it illustrated the pairs exhaustion from last few weeks drop. The range is simple to see and the only thing to do is play it until it breaks. support is at 78 and resistance is just above at 79.
USDCAD A Scary Ride Today.
You won’t hear this much but the USDCAD was the big mover on Friday in North American trading. The pair began the day at it’s all to familiar resistance zones at 1.0050 waiting for its employment report release. The report shattered expectations and the pair was off to the races. It fell nearly 100 pips before rebounding sharply with a general risk of sentiment in late trading. Heading into next week, resistance will once again be at 1.0050 and support is now at the old pivot at .9950.