It has been a slow start to the new week and data is limited today. Keep an eye on the AUDUSD for a wedge break and the GBPUSD to see if the 50 Fib holds. As always remember to keep your trades KEANE and play it safe.
EURUSD Bounced of Support Zone
The EURUSD finished a wild week with a bit of stability for a change. The 1.2665/1.2625 support zone managed to stop the pairs decent. the 1.2625 level represents the year to date low and 1.2625 has been strong daily price support. Profit taking heading into the weekend could have contributes to todays bounce. Resistance begins at daily price support at 1.2815. Above this level we find the .382 fib from May’s highs at 1.28886 and daily resistance at 1.29. The 1.2886/29 resistance zone would be attractive to sellers if the level is reached.
Res 1.2815 1.2886/1.29
GBPUSD The 50 Fib Saved the Day
The 50 Fib from the Jan lows at 1.5767 managed to attract buyers into the end of the week. In New York trading the pair fell back to test trend line support before rallying into the weeks close. The calender is full next week for this pair so trading should be active. Support now begins in the 1.5767/30 zone. This area will be pivotal heading into next week. A hold of this level and we could see a move up towards the 159.80/1.60 area. A break of the support zone could see a rapid fall towards 1.56.
Res 1.5835 1.5980/1.60
AUDUSD Riding the Trend Line Lower
The AUDUSD consolidated its weekly loses on Friday. Similar to Thursday the pair appeared to be making run at trend line resistance before being knocked back once again. The cross will start the week in a wedge on the one hour chart. .9800 creates daily support and trend line resistance begins .9865. Whichever way the pair breaks will dictate price action into the new week.
NZDUSD Another Bounce of Channel Support
The NZDUSD continued to ride the descending channel lower throughout last week . Where it will stop in anyones guess. One of the most consistent trades during this fall is to buy the pair at channel support for shallow scalps. The NZDUSD created year to date lows last week but has significant support coming up at .75 followed by .7385. Resistance begins at .7650.
USDCAD Slipped out of the Range
The USDCAD did the unthinkable this week and broke out of the range that has contained over the last few months. On Friday the pair gained a bit of momentum and pressed above the 1.02 area. Resistance is now at daily highs at 1.0225. Above this level we run into a shallow top around 1.03. Support is now at pst resistance at 1.0050. A bit of consolidation could be in the cards to start next week.
USDJPY Can't Catch a break
It was a tricky week for the USDJPY. The pair appeared to make a break from it descending channel only to be thrown right back into the grind. Since hitting highs around 84 in March the cross has not been able to gain any traction to slow it decent. The pair is once again near levels where government intervention must be considered. For me that rules out shorting the cross. In the meantime support can be found at 79 followed by 78.20. If this level is reached the USDJPY will be back to were it began in Jan. Resistance begins at 80.60.