The Reserve Bank caught traders off guard Tuesday and lowered interest rates by 25bp. The commentary afterwords painted a picture of a declining economy struggling with slowing demand from China. This pushed the pair to around 1.03 in early Asian trading where the cross consolidated until North American traders hit their desks. The pair continued its decline in New York beyond support at 1.0280. A hold at this level open the pair up for a test towards 1.0175. The cross is currently resting at trend line support at 1.0250. This level could contain the cross in the interim. Resistance now begins at 1.0280 and the .618 fib at 1.0340.
Sup 1.0250 1.0175
Res 1.0280 1.0340
Keane Plan...Watching price action around 1.0250. A pullback could find sellers.
To Access Yen Talk, Currency Watch Videos, Current Trade Setups and Current KEANE Trades Via Private Twitter Feed Click HERE
For a Free 1-week trial click HERE