It was one of those days. In New York trading the action crawled along without much conviction in either direction. The markets appear to be catching their breath after the QE mania sent many of the pairs screaming higher last week. Heading into Wednesdays trading in Asian, I will once again be watching the GBPUSD for a break of its current range. Today was an inside day. I will also have my radar set on the AUDUSD, the cross is attempting to bounce at the trend line support. A hold above 1.0450 could open the pair up for a continued push higher. The highlights of the data tonight will be the JPY Monetary Policy Meeting and Rate Decision and the GBP Bank Of England Minutes. As Always remember to keep your trades KEANE and play it tight.
EURUSD SAY IT AIN'T...BROKE THE WEEKLY RANGE
The EURUSD broke out of its narrow range to start the week on Tuesday. The pair was unable to gain much momentum to the down side in New York. The cross has multiple levels of resistance resting between 1.3040 down to 1.30. This area should act as a solid resistance zone. If the cross is able to break below this level, then a more substantial correction towards 1.2820 could be in the cards. Resistance begins at the weekly high around 1.3170.
Keane Plan. Watching the price action at the support zone between 1.3040/00
GBPUSD PLAYING THE RANGE
The GBPUSD has traveled in a tight range this week. The pair appears to be in the process of inside day. This adds to the importance of the high and low of the week. The high is at 1.6272 and the low is around 1.6210. A break of either of these ranges could indicate a move higher or lower. A push towards above the top of the range could lead to a test of the 1.64 region. A break below the weekly low could run towards the monthly descending trend line that use to be resistance that is now support around 1.6130. Bank of England minutes are on tap in Early trading Wednesday at 8:30 GMT.
Keane Plan. the plan is simple…Waiting for a break above or below the weekly range. Below target 1.6130, above could run towards 1.64.
AUDUSD BATTING AROUND TREND LINES
The AUDUSD seems to be stuck in a game of tug a war between two trend lines. The trend line that is creating resistance dates back to July of 2011 and is currently resting right 1.6050. Support is being garnered by the descending trend line that acted as resistance last week but is now support at 1.0420. The pair bounced at trend line support on Tuesday in New York . Until the cross gathers enough firepower to break out of this range playing the middle could be the plan.
Keane Plan. Playing the range until it breaks.
Not much has changed over the last 24 hour with the NZDUSD . similar t the GBPUSD the pair is trading in a very narrow range. The key to trading the pair will be to keep your eyes open for the breakout that will happen at one time or the other. Resistance is at the weekly high at .83. A push above this level could send tha pair on its way towards .8470. Support is still strong in the support zone between .8220 and .8185. A hold above this support zone favors a move higher.
Keane Plan…Looking for a break of the range.
USDCAD NOWHERE PLANS TUESDAY
The USDCAD had nowhere plan today and did it rather fast. The cross danced to the left and the right but all in all finished right where it started. Resistance begins at past support at .9840. A move up to this level could very well find sellers. Support belongs to the descending trend line that capped price action once again last week around .9680. Any push higher in risk should send this pair lower.
Keane Plan…Watching price action looking for hints of a move lower.
USDJPY JUMPY DURING POLICY MEETING
The USDJPY has been relatively tame so far this week. The cross pushed higher in late New York Trading after rumors circulated regarding the Bank of Japans interest in discussing easing during Wednesday’s Policy meeting. In the mean time a break of weekly resistance at 79 could lead to a test of the 79.65 zone. Support begins at 78 and a break of this level could lead to a test of the recent lows.
Res 79 79.65
Keane Plan.. remained sidelined until rate talk shakes itself out.
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