The Keane Plan…Friday’s Trading Plan
2012
The majors pushed higher against the USD on Thursday and may be looking to extend their gains into the weekend. Weak data sparked the rally with jobless claims, July housing starts and August Philadelphia Fed Business survey all coming in lower than expected. Igniting the spark for further QE once again. On Friday I will have my attention set on the EURUSD, ADUSD and USDJPY. The EURUSD is trying to maintain above the 1.2330 level. A hold at this price could lead to a push up towards 1.2440. The AUDUSD is once again trying to make a stand at 1.05. A push higher at this level could squeeze shorts to the side. Finally, the USDJPY has continued to march higher. A hold above 79.15 could expose the .80 area. Data flow on Friday will once again be slow in Asian but picks up in Europe with the release of German Producer Prices Report. The real fireworks begin in North America with the release of the CAD CPI and the University of Michigan Report. Remember to keep your trades KEANE and play it safe.
EURUSD Holding Its Ground
The EURUSD has been consolidating in a very narrow range over the last ten days. The top of the range has been around 1.24 and the bottom is near 1.2250. If the cross can break the weakly highs around 1.2380 we could see a test of the range top into the end of the week. Short term support now begins at 1.2330.
Sup 1.2330 1.2250
Res 1.24 1.2440
Keane Plan: Looking for a move down towards 1.2330 to find buyers.
GBPUSD BREAKS THE HIGHS OF THE WEEK
The GBPUSD pushed higher in New york and closed the day at new weekly highs. If the pair can break above daily price resistance at 1.5735 the cross could test the 50 fib from the May lows at 1.5782. Support still lays at the .382 fib from the May lows at 1.5660. The cross is still climbing the ladder higher creating higher lows and higher highs.
Sup 1.5660
Res 1.5735 1.5782.
Keane Plan: Looking for pullback towards 1.57 to find buyers
AUDUSD HOLDING ABOVE 1.05
The AUDUSD is still doing its best to maintain its footing above the 1.05 level. If the cross can gain traction around this level the pair could rally towards support around 1.0630 to close the week. A break below support could lead to a test of 1.0430. The pair has been reluctant to move lower thorough out the week,
Sup 1.05 1.0430
Res 1.0630
Keane Plan. Watching the 1.05 level. A confirmed break could expose 1.06 to the topside and 1.0430 to the bottom.
NZDUSD CLIMBING THE LADDER OF FEAR
The NZDUSD regained most of the ground it lost during the week. Resistance is at the weekly high at .8137. A break of this level could lead to a test up towards .82. I have said it before, As long as the pair remains above .8060 the path of least resistance is higher.
Keane Insights: Watching the Weekly highs at .8138. A break of that level could lead to a test of .82
USDCAD ANOTHER DAY AND ANOTHER LOW
THE USDCAD steady decline lower continued on Thursday. The pair broke below support at .9870 and may be preparing and attempt at the .98 level. Any pullback toward .9950 or parity should find sellers. CAD Consumer Price Index is due 12:30 GMT Friday.
Sup .9870 .98
Res .9950 1.000
Keane Plan: Looking for A pullback towards Parity
USDJPY RIDING MOMO HIGHER
The USDJPY continued its move higher today. Somewhat disqualifying my hypothesis that the pair was pushing higher in anticipation of higher USD treasury rates in the future. The Economic Data out of New York did little to throw water on QE expectation . The pair now has support at 79.15 followed by 78.70. A pick up in risk could slow the current up trend. A hold above 79.15 expose 80.
Sup 79.15
Res 80
Keane Plan: Could see a pullback with a move higher in risk
