The markets fired higher on Friday and the majors strengthened against the dollar.  The short squeeze caught many traders off guard after disappointing data out of Asia this week indicating the region is slowing.  Heading into next week all eyes will be on the EURUSD to see if it can remain above trend line support an produce a true reversal for the pair.  Everyone have a great weekend and remember to keep your trades KEANE.

EURUSD SHORT SQUEEZE TO END THE WEEK

1 week chart

The EURUSD spent the week within a tight 180 pip range.  The cross wandered lower all week until catching a bid Friday in New York.  The cause of this short squeeze is up in the air.  Traders may just be pulling their bets after Chinese data came in weak but not as weak as expected.  Future rate cuts from the worlds most populus country may already be worked into the number.

4 HR Chart

Looking at the pair on a smaller scale, it is apparent that the cross broke above the descending trend line that has pushed the pair lower over the last month.  A strong 4hr Close above this level could indicate a buy signal heading into next week depending on the open Sunday.  To start the week support will be the descending trend line around 1.2210.  Any back test of this level could find buyers.  Strong daily resistance begins at 1.2330.

Sup                    1.2210

Res                    1.2230

Plan:Above the descending trend line at the Asian open Sunday could represent a nice RR buying opportunity.

GBPUSD IT"S A BIRD, IT"S A PLAN, NO IT'S THE POUND

GBPUSD

The pound started trading in North America near its lows of the week.  Then out of no where the pair changed from mild-mannered English gent to a mild-mannered supper hero.  The GBPUSD moved up over 100 pips in early New York trading.  The move is interesting because the catalyst is a bit of a mystery.  Low volume short squeeze is the standard line.  Regardless of the cause the cross is finishing the week higher and settling near two-week highs at 1.5575.  This level should act as resistance to start next week.  A push above this point and a run up towards the 1.5650/60 zone could be in the cards.  Daily price support begins at 1.5460.

Sup           1.5460

Res            1.5575

Plan:    1.5575 is the pivot.  A break higher favors longs towards 1.5650.  A could target price could retrace towards 1.55

AUDUSD CAN"T HOLD THIS PAIR DOWN

The AUDUSD finished the week with a bang.  The cross shot higher to start the week basically where it began.  Fears of a slowing China or growing domestic unemployment had little effect on this pair.  Heading into the new week we could see a bit of consolidation after Friday’s strong move. Support is now at past resistance at 1.0180 and resistance is at weekly highs at 1.0280.

Sup        1.0280

Res        1.0180

Plan:  Cross is sitting mid-range.  Wait and see.

NZDUSD BACK IN A RANGE

The NZDUSD broke higher today in North American Trading.  The cross managed to break past support turned resistance at .7930.  This level will now once again act as resistance.   The pair is now firmly in the range that it started the week in.  The top of the range is at .80 and the bottom is down at .7930.  I would expect a bit of range trading to start the week.

Sup                 .7930

Res                 .80

USDCAD DOWN WITH RISK

The USDCAD broke below the ascending trend line that cross road higher on Thursday shortly before the release of the Chinese GDP figure.  From that point on the cross slide lower for the remainder of the trading day.  Support can be found at the 50 fib from May highs at 1.0123 and resistance is at the .382 fib at 1.02.  So it is truly a fib affaire at the moment.

Sup     1.0123

Res     1.02

USDJPY IN THE CONFORT OF A RANGE

The USDJPY has traded in a narrow range over the last three weeks.  The cross seems very comfortable drifting between 80 and 79.10.  Until the pair breaks below or above this range scalping the inside is the way to go.

Sup   80

Res   79.10

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