The majors fell against the dollar for the majority of the trading day on Thursday. The tumble was sparked by a disappointing jobs report out of Germany and fears of another uneventful EU Conference. Heading into the New York close the majors and markets in general rallied on reports and rumors that the German government may by softening its stance against joint Eurobounds. This market is difficult to trade at the moment because any news or rumor from the EU conference could tilt the majors in one direction or the other. Heading into Asian trading almost all of the major are at significant support levels. Watch for strong counter daily trend 4 hr candles to enter for another thrust higher. News flow is light in Europe and Asia so rumors and blurts should rule the day. As always keep your trades KEANE and play it tight.
EURUSD UNEMPLOYED GERMANS
The German Employment report was disappointing Wednesday and drove the EURUSD and risk in general lower throughout the day. The cross is testing significant support at 1.2405. If this level is broken we could see a push towards the month lows at 1.2285. Resistance begins at 1.2540.
Sup 1.2405
Res 1.2520
Plan: Looking for a bounce on support at 1.2405. Waiting for a 4hr confirmation.
GBPUSD SCREAMING LOWER
The GBPUSD fell over a 14o pips today with a decline in risk. The pair is near strong daily support at 1.5475. This level has supported the pair on multiple occasions. Resistance begins at the descending resistance trend line at 1.5615.
Sup 1.5475
Res 1.5615
Plan: If the 1.5474 level holds wait for a 4HR positive candle and place trade with stops just below 4hr low.
AUDUSD PARITY PARTY ONCE AGAIN
The AUDUSD fell through out trading Thursday. The pair seems to have found a bit of traction at parity. A hold at this level and we could see a move higher back towards the ascending trend line that once was support at .1.0090. Below parity additional support can be found at last weeks lows at .9970.
Sup 1.00/.9970
Res 1.0090
Plan: Looking for a hold of the 1.00/.9970 support zone. Waiting for a 4hr confirm. If this levels break could ride lower towards .9850
NZDUSD TESTING MAJOR SUPPORT
The NZDUSD followed its channel to the key in Asian and European trading. The cross touched the top of the channel and then began to fall once again. The only problem was that the cross pushed right below its support line in New York trading. The pair is currently resting at significant support in the .7850/40 zone. .7850 represents the 50 fib from the June decline and .7840 is strong daily support. A break of this level could open up the cross for a run at .382 fib level at .7758. Resistance begins at the ascending trend line at .7960.
Sup .7850/40
Res .7960
Plan: Watch the .7850/40 support zone for a hold or break. A hold opens up a bounce higher a break exposes .7758.
USDCAD A BREAK HERE AND WE COULD TEST MOUNTHLY HIGHS
Oil hit the wall once again today and has dropped over three percent, to trade at $77.70, heading into the New York close. This factor combined with a risk off environment has pushed the USDCAD past the weekly high to challenge major resistance at 1.0353. If this level breaks we could see a test of the monthly high at 1.0440. Support begins at the day lows at 1.0230.
Res 1.0350 1.0450
Sup 1.0230
Plan: On hold until the Asian open. Look for a one hour break of res at 1.0353 for a press to 1.0450.
USDJPY COILING
The USDJPY has been trading in an extremely narrow range over the last 24 hours. The pair appears to be coiling for a move. In which direction I am unsure. The cross did not strengthen with risk today which could mean the pair will move higher when risk returns. For now watching the chart is the plan. Support is at .7920 and resistance is up at .7980.
Sup .7920
Res .7980
Plan: Standing aside. Instead Watching EURJPY Support at .9850 And CADJPY support at .7640.
