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It was an eventful day of trading on Thursday.  Things started of with  bang in New York with the BOE holding interest rates and the Asset Purchase Program steady but at the same time China unexpectedly lower interest rates by 25 bp.  This created a risk on environment into the open of trading.  Then at 10 ET Ben Bernanke was testifying before congress and placed a damper on expectations for further QE.  Heading into tonight's trading I will be keeping an eye on the EURUSD.  The pair is near a  significant support zone at 1.26/2625.  I would expect sellers to emerge at this level.  The data highlights for the remainder of the week start in Asia with the release of JPY GDP, followed by the GBP BOE/GFK Inflation Report.  In early North American trading Friday all eyes will be on the CAD Employment Report.   That is it for now so remember to keep your trades KEANE and play it safe.

TAGGED AND RELEASED THE 1.26/2625 Zone

The EURUSD may have finished its move higher for the week.  The cross has moved up to test the 1.26/2625 resistance zone.  This level combined with Bernanke cooling the flames on QE3 could stop the pairs accent.   A break of the 1.2450 level could indicate a resumption of the downward trend and we could see a retest of 1.2450.  Any move up to the 1.26/2625 zone could be considered a selling opportunity.

Sup   1.2540         1.2450

Res   1.26/2625

FIB Level

.382                1.2667

. 50                 1.2784

.618               1.2902

GBPUSD BOE SITTING ON ITS HANDS

It will be interesting to see how the GBPUSD plays out in the days ahead.  The BOE kept interest rates on hold and did not add to its Assets Purchase Program.  This was a surprise to many traders and pushed cross through key resistance.  Heading into Asian and European trading 1.56 should be key resistance and 1.5510 is strong daily support.  A break below 1.5510 could indicate a move back down to the monthly lows is in the cards.  This pair could range trade into the end of the week.

Sup   1.5510

Res   1.56

AUDUSD TOUCHED PARITY

The AUDUSD broke above the .382 Fib level from the May decline with a better than expected Employment Report.  In early trading Friday the cross briefly tested parity and appeared ready to test the 50 Fib at 1.0032.  The parity 50 fib zone could prove to be a tough egg to crack.  Any move up into this zone should attract sellers.  A break back below of support at .9875 could accelerate loses down towards the .98 area.

Sup  .9875

Res  1.00/0032

NZDUSD TESTED THE .382 Fib

The NZDUSD followed the AUD higher after better than expected jobs numbers pushed the pair higher.  The cross moved up to touch the .38 fib from May’s decline before giving up ground.  This level should act as solid resistance.  A break of this price and the 50 fib would be the next level to watch at .7845.  Heading into Asian and European trading support can be found at .7675.

Sup  .7675

Res  .7750

USDCAD EMPLOYMENT REPORT ON THE WAY

The USDCAD followed risk in European trading and pushed down to test the 1.02 level.  A break of this price and we could see a move down towards the 1.0050 area.  To keep things simple.  Heading into Asian trading watch resistance at 1.0260 and support at 1.02.  A break of either of these level should indicate the price action heading into the end of the week.  Keep an eye out for the Employment Report Friday in early New York trading.

Sup  1.02

Res  1.0260

USDJPY DRIFTING HIGHER

The USDJPY continued its slow trip higher throughout Thursday’s trading.  Heading into the close of the week risk should lead this pair.  Strong daily resistance is up at 80.15 and support is down at 79.  As long as the pair stays above 79.50 the trend could remain higher.

Sup  79

Res  80.15