Daily Close…Wednesday Trading Plan
2012
It was a difficult day to trade Tuesday. The marks dipped and ripped as Bernanke testified to the Senate. The interesting thing is that the fed chairman really didn't say anything. He simple restated what traders already know that QE is a possible course of action if the economy declines. Most of the majors finished the day near or at resistance or support levels. It will be interesting to see if these moves have any follow through in Asian and European markets. As of the close of trading in New York the USDCAD is attempting to break below support at 1.0123. This level has contained the pair so far this month. News flow is slow in Asia but picks up in Europe with the release of the GBP Minutes and Jobless claims. As always remember to keep your trades KEANE and play it safe.
EURUSD INSIDE A RANGE
The EURUSD has been holding in a narrow trading range so far this week. The top of the range is at 1.2330 and the bottom is at daily price support at 1.2150. The cross fluctuated in a 100 pip range during Bernanke testimony to the Senate. To finish the day right about where it began. Until the range breaks the only thing to do is to play the inside.
Sup 1.2150
Res 1.2330
Plan: Play the range.
GBPUSD SLIDING UP THE TREND LINE
The path has been nothing but direct today for the GBPUSD. The cross dumped and rallied on expectations for and against further QE. In the beginning of Bernanke’s testimony the cross shot lower to test the acceding trend line only to rebound after QE was given as a possible way to stimulate the economy. Until the descending trend line is pierced the path of least resistance is higher. Trend line support now begins around 1.56. Resistance is at the daily high at 1.5675. A break of this level opens the door to a move towards 1.5720. In early European trading Wednesday the GBP Minutes and Jobless Claims will be released.
Sup 1.56
Res 1.5675 1.5720
AUDUSD UP SHE GOES
The pair has moved up around 100 pips over the last 24 hours. Fears of further QE seem to be the jet fuel of the rise. Major daily resistance rest just above at 1.0325. If this level is broken we could see another push up towards 1.0460. Trend line support has led the way and is currently around 1.0250. If this level gives daily support can be found just below at 1.02.
Sup 1.0250 1.02
Res 1.0325 1.0460
NZDUSD FEELING OUT EVERY CORNER OF THE RANGE
The NZDUSD was a curious cross today as it touched both the top and bottom of its range. The pair feel with risk only to rebound after the QE picture was cleaned up with a haze of black paint. The pair is still in its range with resistance at .80 and support just below at .7930. A break of resistance could lead to a push up-towards .8060.
Sup .7930
Res .80
USDCAD TIGHT
The USDCAD has managed to coil in a very tight range so far this month. The cross has traveled in a narrow 50 pip range. the top of the range is up at 1.0170 and the bottom is down at the 50 fib from the May lows at 1.0123. Playing the range is the plan until it breaks.
Sup 1.0123
Res 1.0170
USDJPY Slowly choosing it's Plan
The USDJPY has been less than responsive to fears of further QE out of the United States. The cross moved up to test resistance but reversed coarse at that point. Resistance is currently at past support at 79.15. Daily Support can be found at 78.60.
Sup 79.15
Res 78.60
For access to Keane Insight’s and current trade stream http://wp.me/P2pFeJ-1IT .
First week is free. To follow on twitter look for THE KEANE @chrisfkeane
