It was slow kick of to the week.  Most of the majors drifted around throughout Monday.  Finishing even or slightly down on the day.  The ISM report was the highlight of the day posting a sub 50 reading.  This created a down draft for the majors starting the trading day in New York.  The JPY crosses where effected the most by the disappointing data.  the USDJPY dropped 50 pips while the while the GBPJPY dropped almost 90 before rebounding into the close of the day.  Heading into Asian trading all eyes will be on the AUD Rate Decision.  A dovish stance could send the AUD lower against the majors.  Other than that trading could be slow and range bound until Thursday when news flow picks up and the Fourth of July holiday is over.  As always remember to keep your trades KEANE and play it safe.

EURUSD A GOOD CITIZEN

The pair has been drifting lower after shooting higher to touch the descending trend line on Friday. The cross is now settling in near where the pair opened Friday in New York around 1.2570. This level could support the pair in the short-term. If the EURUSD breaks below this level we could see a test of 1.2520. Resistance begins with the .382 fib from the May lows at 1.2667. Followed by the descending trend line at 1.2680.

Sup 1.2570 1.2520

Res 1.266780

Plan: Waiting for a bounce to short.

NO WHERE MAN WITH NO WHERE PLANS

The GBPUSD had an uninspired trading day on Monday. The cross moved a bit over there before slowly crawling over here. No real direction. The pair did test 1.57 but could not rally above. In the mean time support is at 1.5720 and resistance is on the ascending trend line at 1.5670. if that level gives way daily support at 1.5650 could be in play.

Sup 1.5670 1.5650

Res 1.5720

Plan: Waiting for a test of either the ascending trend line or daily price resistance at 1.570.

AUD RATE DECISION ON TAPE

The highlight of Tuesday’s trading could very well at 12:30 ET with the release of the Reserve Bank Rate Decision. Depending on the language after the release we could see a pop or fall in the cross. Heading into the rest decision resistance can be found at 1.0350 and support begins at past resistance at 1.0220.

Sup 1.0220

Res 1.0350

Plan: Watch for hints of a slowing economy and we could see a significant drop in this pair.

NZDUSD SHALLOW RANGE

The NZDUSD played in a very shallow range today. The cross moved around in about a 50 pip range. The Analysis is simple. resistance is at .8060 and support is at .80. The AUD rate decision could push the pair out of its range. If not we could see range bound trading until after the Fourth of July.

Sup .80

Res .8060

USDCAD UNCHANGED

The USDCAD consolidated for the majority of the day. Finishing the day where it began. Heading into Asian trading it is simply a game of support and resistance. support is at 1.0150 and resistance is at 1.02. If the pair break above or below either of these level we could see a bit of follow through. If not, range trading could be the name of the game.

Sup 1.0150

Res 1.02

USDJPY FALLS WITH ISM

The JPY crosses fell aggressively after a sub 50 reading in the ISM report in New York. The USDJPY moved down about 50 pips following the report but rebounded a bit into the close of the day. The pair may remain range bound until Thursdays trading.

Sup 79.20

Res 80