The majors fell against the dollar after briefly rebounding in Asia on Tuesday.  The decline was sparked by possible delays regarding the German ESM/fiscal pact.  This news created a general risk off environment and pushed the EURUSD below critical support at 1.2275.  The longer the pair remains below this level the larger the odds are for a move lower.  Heading into Wednesday's trading all eyes will be on China once again with the release of the CNY New Yuan Loans report.  This report could be the catalyst to push the NZDUSD and AUDUSD below support levels they tested into the New York close.  Other news of interest in European and Asian trading is NZD House Sales and EUR Germain CPI.  As always remember to keep your trades KEANE and play it smart.

EURUSD CRACKED THE LAST RUNG OF DEFENSE

EURUSD

 

The EURUSD broke to new year  to date lows Tuesday in New York trading.  The decline was sparked by German court delays regarding the ESM/ fiscal pact.  The German courts finial decision could be weeks to months away.  Once again slowing down the progress, or at least the image of progress, regarding a solution to the debt troubles in the EU zone.  The EURUSD managed to break below and hold under the crucial 1.2285 support zone.  this level will now become resistance.  To find support below 1.2185 a larger view was required.  A week chart reveled that support begins at May and June weekly lows from last year at 1.2150 (Weekly Chart is Above).   If the cross breaks below this price level the lows from last June and the year will come into play at 1.1880.

Sup     1.2150               1.1880

Res     1.2285

Plan:   A break and hold below 1.2285 could indicate a move lower.

 

GBPUSD NOT JOINING THE PARTY

The GBPUSD cross did not join the party lower on Tuesday.  This was most likely due to declines in the EURGBP.  The technical outlook for the pair has not changed over the last week.  The cross is in a range with support at 1.5475 and resistance at 1.5550.  If the pair breaks below support at 1.5475 we could see a move towards 1.54.

Res      1.5550

Sup      1.5475                 1.54

Plan:  Play the range.

AUDUSD SHOWING SIGHNS OF WEAKNESS

The AUDUSD tried to rally once again on Tuesday in Asian and early European trading.  But headwinds may have tried out the pairs legs.  Falling commodity prices and indications of a slowing import demand from China could pressure the cross in the near future.  The AUD has had difficulty moving of the descending trend line that has directed the pairs accent since the end of last May.   Trend line support begins at 1.0170 and daily resistance begins at 1.0250.  Data out in Asia Wednesday, CNY NEw Yuan Loans, could impact this pair.  Any 4 hr close below trend line support could lead to a move back towards parity.

Sup     1.0170                1.0140

Res     1.0250

NZDUSD Testing Support

The NZDUSD is still bouncing around in a narrow range.  The cross has had difficulty pushing higher and could push below support at .7925 if commodity prices continue to fall.  A push below support at .7925 could open the pair up to a test towards .7840.  Resistance begins at .80.

 

Sup    .7925              .7840

Res     .80

USDCAD BREAKS RESISTANCE

The USDCAD broke through weekly resistance at 1.0220 in trading Tuesday.  If the cross can squeeze past additional resistance at 1.0230 we could see push higher towards 1.03.  Support now begins at 1.02.

Sup    1.02

Res   1.0230              1.03

USDJPY SAME OLD SAME OLD

 

This pair  is stuck in a moment.  It appears that investors are happy parking cash in this cross and waiting out the troubles around the world.  For the last few weeks a narrow range has dictated all price action.  The top of the range is up at 80.00 and the bottom is down at 79.20.

Sup  80.00

Res   79.20

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