The story on Monday focused on the commodity pairs. As they pushed lower against the dollar throughout most of trading on Monday. All in all, it was a rather slow trading day due to the Jewish holiday but things should pick up heading into Asian trading on Tuesday. The JPY Bank of Japan minutes and AUD Reserve Bank Board minutes are due in early asian trading. Followed by the GBP Consumer Price Index and the German Zew report in European trading. Heading into these reports I will be focusing on the consolidation ranges in the EURUSD and GBPUSD looking for a break of the range for a hint of the price action to start the week. As always remember to keep your trades KEANE and play it safe.
EURUSD CONSOLIDATION IS THE GAME
The EURUSD has spent the majority of the day Monday carving out a consolidation zone to start the week. The pair is now range trading between 1.3170 and 1.3080. A break of the range will be key for future price action. A break to the topside exposes daily price support at 1.3280. A break thru range support could lead to a push lower towards 1.2930. At 9:00 GMT Tuesday the German ZEW is due.
Keane Plan…Leting the pair talk to me. Looking for a break of the opening range.
GBPUSD SIDEWAYS IS THE PLAN
The GBPUSD has traded sideways in a consolidation zone to start the week. similar to the EURUSD A break of the range could dictate the price action to start the week. A break below range support at 1.62 could lead to a test of the descending trend line at 1.6130 This level is past resistance and could act as support in the future. A push above the top of the range at 1.63 could lead to a test of the 1.64 level. At 8:30 GMT Tuesday the Consumer Price Index report is due.
Sup 1.62 1.6130
Res 1.63 1.64
Keane Plan….Waiting for a break of the opening range.
AUDUSD BOUNCING AT TREND LINE RESISTANCE
The AUDUSD has continued it bounce of trend line resistance into the new week. Support now begins at 1.0430. a hold of this level could lead to another test of the decending trend line at 1.0575. AUD Reserve Bank Board Minutes are due in early trading Tuesday at 1:30 GMT.
Keane Plan….Watching for a test of support at 1.0435
NZDUSD GLIDING LOWER
This pair has slid lower since the open of trading in New York on Friday. The cross is beginning to wonder near support at .8220. As long as the pair remains above this level the bias will remain higher. A move to .8220 could find buyers. Resistance now begins at the weekly highs around .83.
Keane Plan…Looking for a push down towards support at .8220 for a bounce higher.
USDCAD BOUNCING HIGHER
The USDCAD continued to bounce higher of the descending trend line that has contained price action since last Febuary. The pair is now closing in on daily resistance at .9780. A break of this level exposes the .9840 Level Support is now firmly at the descending trend line around .9680.
Res .9780 .9840
Keane Plan…Watching price action near daily resistance at .9780.
USDJPY QE BOUNCE CONTINUES
The USDJPY rallied throughout the day Friday erasing its loses for the week. The pair is now once again firmly in the range that has contained it over the last few months. Support starts at 77.90 and resistance begins at 79.65. As long as the pair remains above 77.90 it favors a move higher towards the top of the range.
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