Keane Insights Tuesday’s Trading Plan

 

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Monday trading was a bit uninspired.  Most of the majors moved higher against the dollar in North American trading.  Activity should pick up in Asian trading Tuesday with the release of AUD Reserve Bank Decision.  The economic commentary following the decision has the potential to push the cross above the ascending channel the pair has been riding higher.  Dovish rhetoric from the reserve bank could push the AUDUSD back towards support in the 1.0460 area.  The USDJPY and GBPUSD are also in interesting positions heading into Asian trading.  The GBPUSD is pushing against the top of the triangle that has contained price action for the last few weeks.  A hold or break around 1.5620 could show the pairs hand.  The USDJPY is closing in on the bottom of its range near .78.  Buyers have emerged at this level over the past few weeks.  In European trading the GBP GDP estimate is due.  A reading of -.2%  is expected.  As always keep your trades KEANE and play it safe.

ALLIS QUIET ON THE WESTERN FRONT

Monday was a rather quiet and relaxing day for the EURUSD.  Draghi was out of the headlines and the German government only announced their opposition to bond purchases a few times.  In New York trading the cross moved down towards support at 1.2330 before pushing higher throughout the day.  Resistance now begins at 1.2440.

Sup      1.2330

Res      1.2440

Keane Insight:  May consolidate until European trading

GBPUSD FIGHTING TRIANGLE RESISTANCE

The GBPUSD squeezed higher in New York trading.  The pair pushed up over 80 pips after New York Trading began.  The cross settled near the top of the 4hr triangle that currently contains price action.  Resistance at the top of the triangle currently rest around 1.5625.  Support begins at the daily lows around 1.5550.  GBP GDP estimates are due in early European trading.  Estimates are for a print of  -.2%.

Sup  1.5550

Res   1.5625

Keane Insights:  Watching the inside of the triangle.

AUDUSD RATE DECISION ON TAP

The AUDUSD has been lingering uncomfortable close to the top of its acceding channel over the last few days.  Tuesday’s rate decision could be the catalyst to push the pair above trend line resistance.  A clean break of the channel would expose 1.0630 followed by 1.0850.  If the Rate Decision doesn’t inspire a break of the channel the cross could move back towards support at 1.0435.  AUD rate decision is due at 4:30 GMT.

Sup         1.0435

Res          1.0590

Keane Insight:  Waiting for Rate Decision.  PX will dictate.

NZDUSD CONSOLIDATION RANGE

The NZDUSD has filed expectations and a moved up towards the top of the consolidation range at .8235.  This is the same range that the pair drifted around for over two months earlier in the year.  Resistance begins at .8235 followed by .8275.  Support begins around the weekly lows at .8160.  A break of that level could expose the pair for a move back down towards .8060.  The economic commentary following the AUDUSD rate Decision regarding China could impact this pair.

Sup         .8160

Res          .8235

Keane Insight:      Watching Support at .8235 for price action clues.

USDCAD PARITY PARITY PARITY

THE USDCAD has been anything less than exciting over the last 48 hours.  The pair has consolidated in a narrow range around parity.  The cross is still resting near the bottom of it descending channel.  Channel support is just below at .9960 followed closely by daily price support at .9950.  Any move below this level will run into headwinds.  Resistance begins at 1.01.

Sup  .9860/50

Res  1.01

Keane Insight:   Not much data this week.  Playing the range could be the plan.

 USDJPY MOVING TOWARDS THE BOTTOM OF ITS RANGE

The USDJPY is heading towards solid daily support at 78.  The pair has traded in a narrow range over the last three-week.  78. has been support and .7860 is resistance.  The pair has tested the extremes of the range on multiple occasions.  Playing the bottom of the range for pops higher eliminates intervention risks.

Sup       78

Res       78.60

Keane Plan:  Playing the range until it breaks

 

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