The Price action over the last 24 hours has been less than compelling. The majors lost ground against the dollar and Spanish yields expanded once again. Heading into Asian and European trading data will rule the show. At 1:30 GMT the AUD Consumer Price index will be released . A reading of 1.3% is expected. A lower reading would be negative for risk. As of the New York close Tuesday the AUDUSD cross is sitting on support at 1.0240. A departure from this level could find seller around the 1.03 level. following the AUDUSD the GBP joins the act with the release of its Gross Domestic Product at 4:30 GMT. A reading of -.2 is expected. A deviation from expectations could help the pair escape the 1.55 zone. As always remember to keep your trades KEANE and play it safe.
EURUSD HAS A SPANISH COLD
The EURUSD fell through out the trading day Tuesday. The pair broke below key support at 1.2060 following the close of European trading. Tuesdays difficulties stem from concerns over Spanish bond yields hitting record highs once again. This has forced investors to safe haven plays. Forcing the dollar and the 10 year treasury yields lower. Thus creating another year to date low Tuesday. 1.2060 could act as a pivot in Asian and European trading. If the pair remains below this level the cross could continue its slow path towards 1.1880. If the pair breaks above this 1.2060 level the cross could push back towards 1.2150 before new sellers emerge.
Pivot 1.2060
Sup 1.1880
Res 1.2150
Keane Insight: Looking for a pull back towards 1.2150 to sell into.
GBPUSD GROSS DOMESTIC PRODUCT ON TAP
The GBPUSD has been sidelined for most of the week waiting for the release of the GDP figures. The report is due at 4:30 GMT. A print below expectations at -.2% could spark expectations of more government easing in the future and push the pair lower. A positive print could ease pressure on the pair and cause a short squeeze higher. As of the close of trading Tuesday the pair is pivoting at the 1.55 level. A break of this level could expose 1.5460 followed by 1.54. A hold of the .155 level and the cross could rally towards the 1.5580.
Pivot 1.55
Sup 1.5460 1.54
Res 1.5580
Keane Insight’s: Waiting for GDP. Should consolidate until then.
AUDUSD BREAKS SUPPORT AHEAD OF CONSUMER PRICE
The AUDUSD broke below key support at 1.0240 shortly after the close of European trading Tuesday. From this point the pair may begin to look forward to the Consumer Price Index due at 1:30 GMT. Expectations are for a reading of 1.3%. From a technical standpoint support begins at 1.0150 and resistance is at 1.0320.
Sup 1.0320
Res 1.0150
Keane Insight: Waiting for CPI. A break above or below 1.0240 could lead to a push towards support or resistance.
NZDUSD TESTING SUPPORT ZONE
The NZDUSD broke below daily price support at .7860 to touch the .382 fib at .7837 before bouncing higher. This support area has contained the pair for over one month. A move below this level would open the door up for a move down towards the 50 fib from the May lows at .7764. A bounce from this are will find resistance starting at .7920 followed by .80.
Sup .7860/37
Res .7920
Keane Insight’s: The Trend is lower. Waiting for a pullback to short.
USDCAD BEAMING HIGHER
The USDCAD after consolidating for over 24 hours below the 1.20 level popped higher on Tuesday. As long as the pair remains above this level 1.0250 could attract. A break of that price could lead to a substantial move higher. support begins around the daily lows at 1.0150.
Sup 1.0150
Res 1.0250
USDJPY RIDING THE TRENDLINE LOWER
The USDJPY continues to ride trend line resistance lower. The next hurdle for the pair is support at .78. as long as the pair remains below trend line resistance the path of least resistance is lower. The pair could remain under pressure as long as risk aversion grasps the market. 10 year US treasury yields once again broke towards record low on Tuesday.
Res 78.25
Sup 78
Plan: As long as the pair remains below the trend line the path of least resistance is lower.
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