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The majors took a wild ride on Tuesday.  The EURO and the AUD crosses dictate the price action as rumors and surprising data points shifted the markets.  The AUDUSD kicked things off in early Asian trading when the Reserve Bank lowered interest rate by 25 bps and painted a deteriorating picture of the Australian  economy.  This caused the AUDUSD cross to drop over 100 pips during the trading day.  In European trading rumors began to swirl of a possible announcement regarding a bailout of Spain.  Pushing the majors higher against the dollar.  Only to have the majors turn around once again in New York trading after the Spanish PM denied rumors that a bailout was imminent.  Heading into Wednesday's trading all eyes will be on the AUDUSD challenging trend line resistance at 1.0250 and USDCAD hovering around the .9850.  A break of either of these levels could lead to a continued move higher in the dollar across the board.  The economic data is light in European and North American trading.  So price action will be key.  Also keep your eyes ope for any news out of Europe.  As always remember to keep your trades KEANE and play it tight.

AUDUSD TALK OF THE TOWN ....  1.0250 IS KEY

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.

GBPUSD SUPPORT ALL AROUND

The GBPUSD may have to make a decision in the near future regarding which direction it want’s to go.  The pair is slowly drifting towards support levels from the ascending trend line from September’s rise.  Combined with past resistance now turned support from the yearly trend line around 1.61.  A break of this level could expose the fibs stacked up below starting with the .382 fib at 1.60.  Resistance still is strong starting at the 1.63 level.

Sup   1.61

Res   1.63

Keane Plan…watching for a break or hold of the 1.61  level.

USDCAD It's all About 98.50

The USDCAD has been consolidating in a narrow range between .9800/.9850 over the last week.  It will take a push above or below this consolidation zone to start things moving.  A break above .9850 places the pair once again in the .9950 consolidation zone.  which could target a move towards .9950 followed by parity.  A push and hold once again below .98 could trigger a move lower towards trend line support at .9660.

Sup    .98                         .9660

Res      .9850                   .9950

Keane Plan....Watching for a break above .9950 or .99.

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