The markets shot higher after Draghi's comments caught shorts wrong footed.  Many traders were looking for a pullback to short into in Asian trading Wednesday.  Those traders were disappointed on Thursday after Draghi's round of verbal intervention.  Heading into Asian and European trading Friday data will be front and center.  Everything kicks off in Tokyo with the release of a hand-full of reports highlighted by CPI and Retail Sales.  This is followed by CNY Industrial production.  Everything is then quite until the release of Germain CPI.  Most of the majors have managed to hang onto their gains with minimal pullback.  this could indicate a continued move higher to end the week.  At this point the only thing to do is watch the price action and see what develops.  alright traders remember to keep your Trades KEANE and play it safe.

 

EURUSD DRAGHI TALKS PEOPLE LISTEN

The EURUSD found a crack to sink shorts Thursday after ECB President Mario Draghi stated that the ECB would do everything it could, within its mandate, to preserve the euro.  This lead some traders to believe that the ECB had overcome it’s aversion to buying government bonds or perhaps allowing some sort of quantitative easing.  At the moment the comment is only verbal intervention but it has worked.  Spanish yields are down to around 5.30% from 7% only a few days ago.

This news out of Europe helped squeeze traders out of shorts in the EURO.  Leading to a run higher of about 180 pips.  The pair is now back around resistance that has contained price action since July 6th at 1.2340. And support can be found at past resistance at 1.2180.   Any move back to around the 50 fib from Thursdays move around 1.2225 could find buyers looking to push into new highs to end the week.

Sup         1.2225  (50 Fib)                   1.2180

Res          1.2180

Keane Insight:  Looking for a pullback or a break of 1.2330.

GBPUSD EXPRESS TRAIN UPTOWN

The GBPUSD made short work today moving from what looked like a cliff lower to test the highs of the week.  The pair caught many traders of guard following Wednesday’s GDP report which indicated the economy is moving closer to a depression.  This squeeze higher broke through resistance at 1.5580 and 1.5675 to stabilize around what is now support at 1.5675.  I would expect a bit of a pullback after such a large move higher but one has yet transpired.  Resistance is at 1.5720.

Sup              1.5675

Res              1.5720

Keane Insight:  Looking for a pullback towards 1.5580 or a push above 1.5720.

AUDUSD BACK NEAR It's Monthly Support

 

The AUDUSD had pulled of a rather amazing turnaround so far this week. The cross moved down to test the bottom of the daily channel Tuesday night and has since that point moved up around 200 pips.  Heading into Asian trading it will be all about the daily high at 1.0420 and resistance at 1.032o.  A break of resistance could lead to a test of the monthly highs around 1.0460.  Any pullback at the moment may find buyers.

Sup          1.0320

Res          1.0420                     1.0460

NZDUSD BACK IN FAMILIAR TERRITORY

The NZDUSD followed the euro’s led higher today and broke back into the top of its monthly range.  Resistance is now at .8060 and support is down below at .80.  The pair may consolidate in this range in the near future.

Sup      .80

Res      .8060

Keane Insight:   Expecting consolidation

NZDUSD IN IT"S CHANNEL HEADING LOWER

When viewed from a larger prospective it is clear that the USDCAD is riding it’s channel lower.  Creating lower highs and lower lows.  If the trend continues we may have a bit further down to go before rebounding back towards the top of the channel.   The cross is sitting at resistance at 1.01.  A hold of this level and the pair could test 1.0050.

Sup             1.0050

Res              1.01

Keane Insight:   May test 1.0050 before rebounding higher.

USDJPY AT A CROSSROAD

The USDJPY  managed to hold its ground today despite of the fireworks elsewhere in the foreign exchange markets.  The pair briefly touched the .78 level  during the USD Retail Sales report only to recover quickly.  The picture hasn’t changed for the pair.  Support is at 78 and Resistance is up at .7860.  Until one of these levels are broken the range will remain in play.  It is interesting to note that I read an article today that stated that 91% of all retail customers are long this pair.  That would make any sustained move higher difficult at best.  While shorting the cross is risky due to the possibility of government intervention.

 

Sup           78

Res            78.60

 

Keane Insight:  Wait and see.