Keane Insight’s Daily Close…Wednesday’s Trading Plan

 The markets traded in an uncoordinated fashion on Tuesday.  The GBP and EUR pushed higher against the USD while the other majors drifted lower.  Thin market condition can be the only explanation for this sort of market activity.  Wednesday has the prospect of producing a bit more volatility with the release of Germain CPI in early European trading, followed by the USD GDP and Beige Book survey results in North American.  Heading into Wednesdays trading sharp traders will be watching the EURUSD testing its resistance zone.  A break or hold of this level could dictate risk trends in Asian and European markets.  As always keep your trades KEANE and play it smart.

EURUSD DRAGHI MOVES THE MARKETS

The EURUSD pushed higher in European trading after sliding down to touch support at 1.2480.  The move higher was fueled by rumors of bond yield caps on Spanish Debt and Draghi’s decision to stay in Europe during the Jackson Hole Summit.  Many traders are extrapolating Draghi’s forthcoming absence to mean that an announcement regarding Spanish Debt could be forthcoming.  In the short-term the trading markets are still extremely thin ahead of Jackson Hole and range trading may remain the norm.  The EURUSUD is still in a tight range between 1.2590 and 1.2480.  Any move to either extreme could find range traders willing to participate.

Sup    1.2480

Res   1.2560            1.2590

Keane Plan…Playing the Range until it breaks.

GBPUSD BOUNCED OFF THE 50 FIB

The GBPUSD hovered around the 50 Fib From last May’s declines around 1.5782 for the majority of Tuesday’s trading.  When North American traders entered the game the pair bounced towards resistance at 1.5847.  The moves higher places the pair mid-range.  A move above 1.5847 exposes the .618 fib at 1.5904.

Sup   1.5782

Res   1.5847             1.5904

Keane Plan..   Playing the fibs…  .618    1.5904          .500   1.5782           .382     1.5660

AUDUSD IN A NARROW CHANNEL LOWER

The AUDUSD has slowly been moving lower since breaking daily price support at 1.0435.  The pair is currently in a narrow channel moving lower at a snail’s pace.  A break of the top of the channel exposes the 1.0435 level.  Support begins at 1.0320.

Sup   1.0320

Res   1.0435

Keane Plan…Watching the channel for a break to the topside and support at 1.0320

NZDUSD HELLO RESISTANCE

The NZDUSD is testing the resistance zone between .8040/00.  This level is pivotal to the short-term price action.  A break of the pivot could see a test of .7860.  If the pair manages to hold above the .8040/00 zone a retest of resistance up in the .8185/.8235 area could be in the cards.

Sup   .8040/00

Res   .8185

Keane Plan…Watching the price action around the .8040/00 zone

USDCAD DOUBLE BOUNCE AT SUPPORT

The USDCAD bounced of support at .9840 once again.  A break below this level exposes the year to date lows at .98.  It still appears that the pair is trying to reestablish itself inside the consolidation zone from earlier in the year.  Resistance begins at .9880 and .9950.

Sup   .9840

Res   .9950
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