Summer trading was in full force on Tuesday.  The majors moved around a bit in European trading but fell back into a slumber after the European close.  the mover of the day was the GBPUSD.  The pair shot higher after posting less disappointing numbers than expected.   The cross squeezed higher and broke above the triangle that had contained price action over the last few weeks.  Heading into Asian and European trading the economic docket is thin.  All eyes will be on the USDJPY.  The pair broke above the range that has contained it over the last few weeks.  If the cross could gather momentum from this point we could see a push higher.  As has been the case of recent, traders will also be watching the AUDUSD and USDCAD as they are flirting with the extremes of their respected channels.  as always remember to keep your trades KEANE and play it safe.

EURUSD TRADING IN A NARROW RANGE

After the fireworks to end last week the EURUSD appears to be tired.  The cross has consolidated in a 40 pip range through out New York trading.  Data out of Europe will be mild once again tonight.  So the cross may sit tight in its current range.  Resistance rest at 1.2440.  Any move up to this level could find sellers in the near term.  Resistance begins at 1.2330.  In this quiet environment any unexpected news out of Europe could spark large moves.

Sup    1.2330

Res     1.2440

Keane Insight:  Playing the range in this slow environment.

GBPUSD SHOOTS HIGHER ON WEAK DATA

The GBPUSD pulled of a slight of hand on Tuesday and pushed higher.  The cross delivered negative Industrial Production, Manufacturing Production and GDP estimates, a still managed to push higher.  The secret of this trick was that the numbers weren’t as bad as expected.  The cross managed to push above the top of the triangle that has been containing price action over the last few weeks.  The pair moved up to test daily price support at 1.56 befor losing ground for the remainder of the day.  Any move back down towards price and descending trend line support at 1.55 could find buyers.

Sup   1.56

Res   1.5675

Keane Insight:  looking for a retest of the descending trend line near 1.56

CHANNEL TOP REJECTS

The AUDUSD has been picking and poking at the top of its channel for the majority of the week.  On Tuesday the pair decided to back off  a bit a give the channel a bit of breathing room.  Until Thursday the economic docket is empty for this pair.  Which could lead to a bit of range bound trading.  Support begins at the ascending trend line at 1.0510.  A break below this level exposes the pair to move lower towards 1.0425.  Channel resistance rest around the 1.06 level.

 

Sup   1.0510                    1.0420

Res   1.06

 

Keane Insight.  Looking for a test of trend line support around 1.0510.

NZDUSD BREAKS BELOW TREND LINE

The NZDUSD broke below trend line support that has guided the pair higher over the last three weeks in New York.  Resistance is now past support at the bottom of the descending trend line near .82.  Any move up towards that level could run into sellers.  In the short-term support begins around .8125 followed by the bottom of the congestion zone around .8060.

Sup         .8125             .8060

Res         .8235

Keane Insight:  Looking for a move lower in the short term

USDCAD FOLLOWS THE CHANNEL LOWER

The USDCAD has drifted lower throughout the day.  The trading has been slow and boring.  The base of the bearish channel is now at .9950.  This level also coincides with daily price support at this level.  If the cross stretches this low a sellers could emerge.  Resistance has now moved down towards parity followed by 1.01.

Sup       .9950

Res        1.01

Keane INsight:  Any Move down towards the .9959 area could find buyers

USDJPY LOOKING TO BREAK THE RANGE

The USDJPY looked as though it was going to do it today.  the pair huffed and puffed but couldn’t find the power to break above the top of the range at 78.60.  The cross may have extended its range top to the 78.70 level.  Heading into Asian trading it will be interesting to see if any momo can be established for a push above the range.  The economic docket is busy out of Japan Wednesday but with minor reports.  Any move back down towards support at 78 should find buyers.

 

Sup   78

Res  78.70

Keane Insight.  Watching PX at the top of the range.

 

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