Disappointing data out of China was the driving force in a decline in risk in Asian and European trading. North American traders used this dip as a buying opportunity. Leaving many of the majors little changed on the day. Heading into the end of the week I would expect a bit more volatility. I will be focusing my attention on the NZD and AUD dollar crosses. The NZDUSD traveled to the bottom and back to the top of its range on Friday. The .83/350 level will be key in Asia. I will be watching for a hold or break of this zone. The AUDUSD is interesting moving up towards the 1.0450 level. A hold or break at this level will also be key. The economic docket is light tonight, so price action will dictate. As always remember to keep your trades KEANE and play it smart.
EURUSD JAIL BREAK...SKIPS OUT OF THE RANGE
The pair managed to break out of the range that has contained the price action over the last week. The follow through has been timid at best. I would expect any move up towards 1.30 to once again attract sellers into the end of the week. Support begins at 1.29 followed by 1.2820. If the cross manages to break 1.30 a move back towards the highs of the week around 1.3170 could be in the cards.
Sup 1.29 1.2820
Keane Plan…Looking for a pullback up towards 1.30…Price Action will be key.
GBPUSD NARROW RANGE THURSDAY
The GBPUSD spent the majority of the day Thursday in a narrow 40 pip range. Heading into the close of trading in New York the pair is trying to rally back above 1.62. A move back above 1.6235 could negate the negative momentum and turn the cross higher once again. Targeting the weekly high at 1.6272. A break of the daily low at 1.6170 targets a move lower to end the week. Support begins at the descending trend line at 1.6125 followed by daily support at 1.6050.
Sup 1.6170 1.6125 1.6050
Res 1.6235 1.6272
Keane Plan….Watching the highs and lows of the current range. Support is at 1.6170 and resistance is at 1.6235. Looking for a break.
AUDUSD WON'T GO DOWN WITHOUT A FIGHT
The AUDUSD lost ground last night after Chinese data disappointed. The pair moved down to test resistance at 1.0365 but was stymied at that level. The cross is now once again above the descending trend line at 1.04. A hold above the level favor another test of 1.05.
Keane Plan. As long as the pair remains above the descending trend line at 1.04. A move higher is favored.
NZDUSD TRAVELS THE RANGE AFTER GDP
Better than expected GDP figures Wednesday night could not keep the NZDUSD afloat. Disappointing data out of China pushed the cross lower but once again the resistance zone between .8220/.8184 held the cross firm. Resistance begins at .83. Any move to this level should be watched carefully. A break exposes the weekly high at .8350.
Res .83 .8350
Keane Plan…83 is key a break or hold of this level will dictate price action into the close of the week.
USDCAD PUSHING HOURLY TREND LINE
The USDCAD ended the day In New York testing the ascending trend line that has guided the pair higher over the last few days. A break of this level exposes the cross to a test of the daily trend line that has contained the price action for the majority of the year around .9670. If the pair regains traction and glides back above the descending trend line a push towards .9840 could play out.
Sup .9770 .9670
Keane Plan…Watching the hourly trend line for clues.
USDJPY SUPPORT AT 78 IS KEY
The USDJPY continues its delicate walk sideways. As long as the cross remains below the descending trend line at 79.20, the path of least resistance is lower. Support begins at .78. A push towards 78/79.90 could find buyers in the short-term.
Keane Plan….Remianing sidelined unless the cross breaks above the descending trend line at 79.20
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