The majors started the week with a bang.  Fears regarding Spain and Greece pushed the EURO lower and took the risk down with it.  Most of the majors consolidated in New York trading allows equities to catch up with FX volatility.  The exception to the rule was in fact the EURUSD which managed to find a bid and at the New York close is attempting to close the Gap.  Heading into Asian and European trading all eyes will be on the CNY HSBC Flash Manufacturing report.  Any rebound in risk following could find sellers.  As always remember to keep your trades KEANE and play it safe.

EURUSD TESTING THE WATER LOWER

The uncertainty surrounding the EURUSD are once again back in the headlines.  The cross gaped down to start the week due to expansion is Spain’s 10 yr bonds yields to 7.5% and fear that Greece will not be able to meet the obligations of the ECB, IMF and EU.  Heading into Asian trading the daily low will be the focus.  If the pair breaks below that level the cross could be in for an additional push lower.  Solid technical support can not really be found until the 1.1880 level.  Any move up towards the gap open around 1.2150 could find sellers.  The trend at the moment is lower, so trades should focus on the downside.

Sup                 1.2065                 1.1880

Res                 1.2150

Plan:  Looking to sell pullback

GBPUSD GDP WORRIES

The GBPUSD made short work off last weeks gains.  The cross has dropped 200 pips in the last 2 trading days.  The par has found a bit of support at the 1.5520 level.  This price level represents a the bottom of last weeks move higher.  A hold or break of this price could dictate price action into the beginning of the week.  A hold above 1.5520 and we could see a retest of past support now turned resistance at 1.5580.  A break of this level and the next level of support is at 1.5460 followed by the monthly lows at 1.54.

Support                            1.5460              1.54

Resistance                       1.5580

Pivot                                 1.5520

Plan:  Watch the 1.5520 level for direction

 

AUDUSD APPEARS TO BE OVERSOLD

 

The AUDUSD consolidated its loses in New York Trading Monday.  The pair dipped to test support at 1.2440 to start the week.  Any move back towards resistance at 1.0280 could find sellers, followed by the weekly high at 1.0320.  Support is now at the weekly low at 1.0240.

Sup    1.0240

Res    1.0280            1.0320

Plan:  Looking to short near resistance levels.

NZDUSD TESTING THE WEEKLY LOWS

The NZDUSD started the week with a move down to test support created from last weeks  lows at .7860.  This level combined with the .382 fib from the May lows has created a solid support zone for the pair.  Resistance begins at the .80 level.

 

Sup           .7860/40

Res           .80

Plan:  Watching pX at any significant pullback.

USDCAD 1.02 WON"T BACK DOWN

The USDCAD moved higher on Monday with risk .  The pair consolidated gains in North American trading and looks to finish the day about where it began in New York.  The daily high at 1.02 followed by 1.0250 are the near term support levels.  and resistance begins at 1.01 followed by 1.0050.  I would expect a bit of consolidation for the pair in the near term.  A pullback to the 1.0150 could find buyers.

Sup      1.01                     1.0050

Res      1.02

Plan:   Consolidation could be the plan in the near term.

USDJPY FOLLOWING TREND LINE LOWER

The USDCAD moved higher on Monday with risk .  The pair consolidated gains in North American trading and looks to finish the day about where it began in New York.  The daily high at 1.02 followed by 1.0250 are the near term support levels.  and resistance begins at 1.01 followed by 1.0050.  I would expect a bit of consolidation for the pair in the near term.  A pullback to the 1.0150 could find buyers.

Sup      1.01                     1.0050

Res      1.02

Plan:   Consolidation could be the plan in the near term.

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