It is always interesting to look at things with a fresh perspective after a break.  Most of the majors broke the trend lines they had followed higher all month and reversed at the first major support levels.  Now the question is if these pairs will consolidate for the rest of the week or find direction.  Only time will tell but there are a few things we can watch for clues.  The USDCAD is one.  The pair has rallied with risk and has broken most of its common correlations.  If the CAD breaks lower we could see a continuation in the appreciation of the majors against the dollar.  If the pair continues to drift higher we most likely will see falling oil which would indicate a risk off environment.  News should also come into play this evening in Europe.  The EUR Germain Employment Report is due as well as the GBP GDP report.  The later could shack risk trend heading into North American Trading.  As always Keep your trades KEANE and good luck.

EURUSD MAY HAVE FOUND SUPPORT

The EURUSD appears to have found a level of support heading into tomorrows EU conference. The 1.2440 level has maintained price action over the last few weeks. As long as the pair remains above this level my view will be for a push higher. Over the past few days the cross has moved lower in a downward channel. If the pair can beak above the top of the channel around 1.2490 we could see a move towards the 1.26 level.

Sup 1.2440

Res 1.2490 1.26

Summary: As long as the cross remains above 1.2440 a bounce to 1.26 could be in the cards.

GBPUSD FORMING A HIGHER LOW

The GBPUSD fell from the top of its range around 1.5640 in European Trading. If the cross can remain above weekly lows at 1.5535 we could see another push towards resistance at 1.5650. The 1.5650 level combined with the .382 fib just above at 1.5660 creates a strong resistance zone. A break of this level could open the pair up to a run towards the months highs around the 50 fib at 1.5782.

 

Sup 1.5335

Res 1.5650/60

Summary: As long as the pair remains above 1.5535 we could see a run towards the 1.5650/60 zone.

AUDUSD RIDING THE TREND LINE HIGHER

The AUDUSD has been riding an ascending trend line higher since probing below parity to start the week. As long as the cross remains above trend line support around 1.0060 the momentum should carry the pair higher. In the short-term the AUDUSD appears to be in a 15 min triangle a break of this triangle to the top or bottom should give us an idea of the near term direction of the pair.

Sup 1.0060

Res 1.0140

 

NZDUSD CHANNELING HIGHER

The NZDUSD trading plan is simple to see. The cross is in an ascending channel. Buy support and selling resistance. Support begins around .7950 and resistance starts around .7880. If the channel breaks support is strong at the 50 fib from the May lows at .7844.

Sup .7950

Res .7880

 USDCAD LITTLE SPADE NOT MUCH ACTION

 

The USDCAD dropped down to test trend line support in New York Trading. the cross has tried to bounce from this level but has had trouble gaining traction. A break of the trend line could expose the pair for a test of the 1.02 zone. As long as the pair remains above the trend line we could see a slow drift towards the 1.03 area. It is unusual that the pair is drifting higher with risk. The correlation is normally negative. A snap could be in the works.

Sup 1.0250

Res 1.03

USDJPY BOUNCING AROUND

 

The USDJPY has drifted around in a narrow range so far this week. Resistance is around 79.80 and support is down around 79.30. The cross is currently rejecting at the mean of the Bollinger Bands around 79.70. A 4hr close at this level could push the pair towards another test of support.

Sup 79.30

Res 79.80