On Friday the majors screamed higher and never looked back. Most of the pairs finished at their highs for the day and are testing major resistance and support zones. Next week the outlook could clear a bit with NFP on Friday. Trading could be slow in the beginning of the week with the Fourth of July on Wednesday. Heading into the week I will be watching the EURUSD and USDCAD for hints of price direction. If the EURUSD could pop above the daily descending trend line we could see a push up towards last months highs. The CAD is in a similar position testing the 1.0160 level. Remember to keep your trades KEANE.
EURUSD TO THE MOON
Late last night, EU leaders announced that the bailout funds from the EFSF and ESM would be used to recapitalize troubled banks in Europe. This lead to a screaming move higher in most of the majors against the USD. The strength of the move is a great indication of how little was expected from the EU conference. Thursday’s plan of buying on the 4hr pullback confirmation played out very well last night. looking at the pair now it appears the cross could be near the top of its range and we could see a pullback from this level. The Sunday open will be revealing. if we gap higher we could see a retest of the monthly highs. It also looks as though the pair could be in a triangle. Support begins at the descending trend line around 1.2680. A pop above this level could lead to a stop hunt up towards 1.0750. Significant resistance doesn’t begin until 1.2520.
Sup 1.2520 1.24
Res 1.2680 1.27
GBPUSD IT"S A FIB GAME AT THE MOMENT
The GBPUSD followed risk higher on Friday. Bouncing of the 1.55 area once again. That level has become a difficult nut to crack. Heading into Sunday it will be all about a hold or break of the weekly close around 1.57. If the pair breaks above this level we could see a quick test of the monthly lows around 1.5780. Which is also the 50 Fib from the May lows. Seller could be lined up around this level. Resistance now begins at the .382 fib around 1.5660.
AUDUSD AT STRONG RESISTANCE
The AUDUSD shot higher today well beyond my expectations. The cross is currently testing a critical resistance zone created by daily price levels at 1.0220 and 1.0250. If this level breaks we will be back into the consolidation zone from last April. To start next week this zone will be the focus. A break higher and could lead to a push towards 1.0350. A hold at this level and move back down towards 1.0020 could play out.
Sup 1.0120 Pivot 1.0220/50
NZDUSD BREAKS MONTHLY HIGHS
What a move on Friday in the NZDUSD. The Cross quickly made up for all loses made during the week and pushed up to create new highs for the month. Heading into the new week it will be all about a hold or break of the .8060 level. a push above this price level would push the pair back into the consolidation zone from last April. A hold at this level and we could see a run down towards .7950.
USDCAD COVERS THE RANGE
The Cad moved from top to bottom in one day. The pair ended Thursday testing the top of its range around 1.0350 and finished at the bottom 1.0160. If the cross breaks below this level we could see a move back down towards the 1.0050 area. If the 1.0160 area holds we could see a bit of range trading to begin the week.
USDJPY TESTING 79.80
The USDJPY pushed higher with risk to finish the week. The cross briefly pushed above the 79.80 level but could not hold onto its gains at finished below this key level. Heading into the new week if the pair remains below this level we could see a slow move lower back towards 79.20.