The major fell across the table to end the week Friday.  Disappointing NFP number set the tone for another day of declines.  This has things lined up for an interesting beginning of the week.  Many of the majors are resting on key support levels that could provide a push higher into the beginning of the week.  The GBPUSD, EURUSD and USDCAD are all at support and resistance levels.  All of the pairs tested below or above into the close but rebounded above or below support or resistance levels to close the week.  this could set the tone for a reversal into the beginning of the week.  That's it for now, remember to keep your trades KEANE.

EURUSD SITTING ON THE EDGE

It is hard to believe that last Friday the EURUSD is was threatening to break above the descending trend line to the topside around 1.27.  The cross has given back almost four hundred pips during the week.  Most of the decline occurred on Thursday and Friday after the BOE lowered interest and deposit requirements and NFP number came in lower than expected.  Heading into next week we could see a bounce.  The cross similar to the GBPUSD has managed to claw back above key support, which is at 1.2285 for the EURUSD.  With this strong four-hour close buyers may enter the market in Asian trading Monday.   If this level gives there really isn’t much below except open air.  The cross would hit daily trend line support around 1.17, but I would not expect a straight move to this level.  If the 1.2285 level is held resistance begins at 1.2405.

Sup   1.2285

Res   1.2405

Plan:  Watch the 1.2285 into the open Sunday.

 

GBPUSD MAY FIND SUPPORT AT SUPPORT

The GBPUSD moved from the top to the bottom of its recent range over the past week.  The BOE ,Bank Of England, increased its Asset Repurchase Program by 50 Billion to 375 Billion on Thursday.  This news combined with week data and easing out of central banks around the world pushed the cross lower.  From a technical standpoint the selling pressure may be a bit overdone.  The pair managed to close the week above major daily support at 1.5475.  If the cross can remain above this level in early trading on Monday we could see a pullback from last weeks decline.   The first level of major resistance does not begin until 1.5650.

Sup  1.5475                        1.54

Res   1.5650

 

AUDUSD HOLDING IT"S OWN

The AUDUSD finished the week basically where it began.  The cross traveled in a narrow 110 pip range for most week.  On Friday the pair attempted to break below range support at 1.0220.  The cross did closes below this level but only after rebounding to test it once again.  Heading into the open of trading on Monday the 1.0220 level will dictate price action.  If the pair pops back above this level into the open we could be looking for a retest of the 1.0350 level.  If the pair remains below 1.0220 the AUD could drift down towards trend line support at 1.0160 and ultimately test the .618 Fib from the May lows at 1.0132.

Sup       1.0132/40                         Pivot   1.02220

Res       1.0350

NZDUSD IS IN A KNOT

This pair appears to be anchored in place.  The cross traveled in a 60 pip range before blasting lower 50 pips after Friday’s NFP.  The fact that the cross has not fallen with risk could indicate a move higher is in the cards.  Support can now be found at the .618 Fibfrom the May lows at .7942.  A hold at this level and we could see a retest of resistance starting at .80 followed by .8060.

Sup   .7942

Res   .8060

USDCAD TWISTED TAIL OF FIB SUPPORT

The USDCAD traded in slow motion in the middle of the week.  The pair moved down to test the 50 Fib From the May lows at 1.0123.  The cross hovered around this level for 2 days before deciding to bounce higher towards the 1.02 level on Friday.  1.02 also represents the .382 Fib from the May lows.  Until the cross breaks out of this range playing the inside will be the way to go.  When the range breaks, support begins at 1.0350 and resistance is at the .618 fib at 1.0050.

Sup     1.0123                 1.0047

Res     1.02                     1.0350

USDJPY WALKING A TIGHT ROPE

This pair was the definition of uninspired this week.   The cross drifted in a narrow range.  The top of the range is at 80.05 and the bottom is at 79.20.  similar to the CAD the plan is to play the range until it breaks.  When it breaks support begins at 78.60 and resistance is up at 80.60.

Sup   79.20                      78.60

Res   80.05                      80.60