The Keane Approach…Thursday Trading Plan
2012
Wednesday's trading was uninspired and lacked direction. The summer doldrums have overtaken the FX markets. The GBPUSD had its lowest non holiday volatility in five years Wednesday. Most of the majors closed in about the same spot Wednesday as they did Tuesday. The only exception is the EURUSD which pushed lower in European trading. Heading into Asian trading all eyes will once again be on the AUDUSD and NZDUSD sitting on support. On Wednesday both pairs drifted lower taking out stops but returned to support levels. If either pair can gain any traction and bounce from these levels a squeeze could quickly occur. The USDCAD is also still in focus resting around the .99 level. The data flow for the next 24 hours is slow so price action will depend on risk trends. As always remember to keep your trades KEANE and play it safe.
EURUSD Resting on the 50 Fib
The EURUSD broke lower in early North American trading as rumors swirled on swiss selling of the cross. In this trading small moves can be exaggerated due to lack of liquidity. The pair is now resting at the 50 fib from the most recent move lower and buyers could emerge at the level. A break below this level could expose support at 1.2240. Resistance now rest around the weekly highs at 1.2385.
Sup 1.2240
Res 1.2385
Pivot 1.2290
KEANE INSIGHT: Watching the 50 Fib at 1.2290. A solid break higher could squeeze.
GBPUSD STILL PLAY WITH FIBS?
The GBPUSD broke records due to its lazy nature Wednesday. The pair is very comfortable in its current trading range. The cross is dance between the .382 fib at 1.5660 and the .50 fib at 1.5782. Any move to either side of this range could find resistance.
Sup 1.5660
Res 1.5782
Keane Insight: PLay the inside of the range until it breaks.
AUDUSD Has A Crush on 1.05
The AUDUSD is trading like a pair in love. The cross seems to be effectuated with the 1.05 level. The pair drifts around but its mind always seems to return to 1.05. Heading into Thursday it will be interesting to see if the pair can gain any momentum and make a move from it love. The cross managed to break lower on Wednesday enough to clear out stops but returned to its pivot. A clean break of 1.05 exposes 1.0430. A bounce from this level could lead to a squeeze towards 1.0630.
Sup 1.0430
Res 1.0630
Pivot 1.05
Keane Insight: Watching price action for a bounce above 1.05.
NZDUSD Taking It Slow
The NZDUSD is trading very similar to the AUDUSD. Both pairs broke lower in European trading only to bounce back to past support level. As I have mentioned before as long as the NZDUSD remains above .8060 the path of least resistance is a move higher towards .82
Sup .80
Res .8235
Pivot .8060
Keane Insight: Watching .8060. Price Action around this level will dictate future moves.
USDCAD A Bit Camera Shy From All The Attention
The CADUSD appears to be stuck in a moment. The pair seems to want to break lower but can not find any support for its plan. As long as the pair remains around the.99 level risk will remain at bay. A break in either direction could be a tell for the entire market. Support below .99 occurs rather quickly at .9870 followed by.98. Resistance begins at.9970.
Sup .9870 .98
Res .9970
Keane Insight: Like everyone else watching the .99 level with KEANE interest.
USDJPY Thinks It Can, Thinks It Can, Thinks It Can
The USDJPY is fighting a strong battle to remain above 78.70. The pair is dancing around with treasury yields and could remain in a narrow range between 78.70 and 79.15 in the near future. A break above 79.15 exposes 80.
Sup 78.70
Res 79.15
Keane Insight: A break of 79.15 exposes .80
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