Keane Insights. Thursdays Trading Plan

 Thursday is the day everyone has had marked on their calendar all week.  The FOMC meeting will most likely influence the price action of the majors over the short term.  If the FOMC remains sidelined the majors could lose ground against the dollar.  As most pairs have moved up rapidly over the last few days.  If the FOMC announced addition QE the dollar will most likely continue it's slide lower.  All eyes will be on the USDJPY heading into the FOMC.  If additional QE is announced the cross could rapidly drop towards the 76 level.  Chatter out of Japan has already suggested that intervention could be in the cards with such a move.   As always keep your trades KEANE and play it tight.

EURUSD JUMPS AROUND AHEAD OF FOMC

The EURUSD price action was a bit misleading on Wednesday.  At the beginning of the German Consitutional Court decision there was a bit of confusion pushing the pair to rapidly test support at 1.2820 before quickly snapping back.  All this said and done, it appear the EURUSD expects addition QE out of the FOMC Thursday and would fall rapidly if disappointed.  Support begins at 1.2820 followed by 1.2690.  If the FOMC provides the spark the cross expects a move up towards 1.3030 could be in the cards.

Sup    1.2820                   1.2690

Res    1.3030

GBPUSD TESTING YEARLY TREND LINE

The GBPUSD climb higher has bumped substantial support at the descending trend line that has capped price action over the last year or so.  The trend line currently rest around 1.6130.  A break of this level would represent a strong confirmation that the trend higher will continue.  Initial support begins at 1.6050.  The FOMC decision tomorrow will most likely decide the fate of this pair.  A break of 1.6050 could open the cross up to a move towards 1.5960.  A push above trend line resistance could lead to a run higher towards 1.63.

Sup   1.6050

Res   1.6130

Keane Plan….Any move up towards trend line resistance at 1.6130 could find sellers ahead of the FOMC.

AUDUSD WHERE TO NOW

The AUDUSD is in a range ahead of the FOMC.  The top of the range is at 1.05 and support begins at 1.0435 followed by 1.04.  Depending on the results of the FOMC meeting the cross will most likely test at least one side of the current parameters.  A break below exposes 1.0280 and a push higher open the 1.0630 level once again.

Sup   1.04

Res  1.05

Keane Plan….Watching the range….and playing the breaks.

NZDUSD FIGHTING RESISTANCE

The NZDUSD has run into a bit of headwind ahead of the FOMC on Thursday.  The resistance level between .8220 and .8190 has been difficult to crack.  The cross is up nicely ahead of the FOMC and could see rapid losses if disappointed.  Support begins at .8030 followed by .7910.  If QE is delivered at the FOMC meeting the cross could push up towards the .8315 level.

Sup  .8030

Res   .8185/.8220

Keane Plan....A hold or break of the resistance zone is key.  A hold targets .8030 and a break exposes .8315...

USDCAD BOUNCED AHEAD OF FOMC

The USDCAD found a bit of bounce in its step On Wednesday.  The cross managed to gain a bit of traction and stop in tumble lower.  The pair managed to claw its way of support at .9725 to move about mid-range.  Resistance is now just above at .98.  The FOMC meeting results will have an interesting effect on this pair.  If additional QE is announced, the cross could move down once again as oil price would most likely rise with dollar weakness.  If the FOMC disappoints a move back towards .9950 could be in the horizon.

Sup   .9725

Res    .98

USDJPY FOMC ON THE WAY

The FOMC is up to bat.  The USDJPY will have the purist reaction of all the currency pairs.   If QE is announced the pair could spike lower towards support at 77 followed by 76.  If these levels are approached intervention will once be in the wind.  If the FOMC remains on the sidelines a push back from the brink for the pair could lead to a move back up towards 78.15.

Sup  78.60

Res  78.15

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