The story of last week was the lack of volatility in the majors. Heading into this week we could see more of the same. The economic calendar is once again relatively quiet. Of course, the markets can't remain asleep forever. The troubles in Europe will eventually show their head once again. Heading into next week I will have my eyes on the AUDUSD heading down towards the bottom of the channel that has contained it for the last few months. The NZDUSD is also of interest heading into the start of next week. The pair is sitting at support. A hold or break of this level could influence trading through out the week. As always remember to keep your trades KEANE and keep in tight.
EURUSD TRAVELING IN A NARROW RANGE
The EURUSD walked a tight line last week. The cross spent the majority of the week in a narrow range. The Fib levels from the squeeze higher in the beginning of the month provided support level last week. The cross bounced twice of the .618 fib at 1.2250 and once of the 50 fib at 1.2290. I hindsight these trades look simple but consolidation patterns can be random at best. Heading into next daily support begins at 1.2240. This level was last weeks low and a break of this price could expose the 1.2130 level. Resistance begins at the consolidation high at 1.2380 followed closely by 1.2440. Data flow is light once again next week so risk trends could dictate price action.
Keane Plan: Looking for a break of support or resistance.
GBPUSD STILL PLAYING A FIB GAME
The GBPUSD set a recent record last week for lack of volatility. The pair spent the majority of its time in a 60 pip range. The cross spent the most of the week above the .382 fib from the May lows at 1.5660. The pair was unable to push up towards the 50 fib at 1.5782. The 50 fib has remained elusive so far in this pair. As long as the pair remains above the 1.5660 the 50 fib is still in play.
Res 1.5735 1.5782
Keane Plan: Looking for a test of 1.5660 for a push higher.
AUDUSD HEADING TO CHANNEL SUPPORT
The AUDUSD ended the week at its lows. The cross is pushing lower towards the channel support that has held the pair for almost two months. Channel support currently rest around 1.0375. A hold below 1.0430 could lead to a test of this level. A bounce at 1.0430 could lead to a run back towards resistance at 1.0530.
Sup 1.0430 1.0375
Keane Plan: Looking for a test of channel support for a bounce
NZDUSD LOOK OUT SUPPORT HERE WE COME
The NZDUSD spent the majority of the week above the .8060 level. The pair could not muster up enough support for a push up towards the .82 level. the plan still remains the same. As long as the cross remains above the .8060 level a push higher towards .8235 could be in the cards.
Keane Plan…Looking for a bounce at support
USDCAD DRIFTING BELOW CHANNEL SUPPORT
The USDCAD continued its slow crawl lower this week. The pair set a new weekly low around .9860. This level should act as support heading into next week. Past channel support could now act as resistance around .99. A break back into the channel could lead to a pullback towards parity.
Res .99 1.00
Keane Plan: Looking for a pullback to sell into.
USDJPY CONTINUES TO CLIMB HIGHER
The USDJPY is trading in a pure fashion. The cross is moving higher as investors are peeling back expectations for further QE in the near future. Support is now at 79.15 and resistance is around 80.
Keane Plan: Looking for a pull back towards support.
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