It was Columbus day in the Unites States and the markets tried their hardest to appear open. But truth be held trading never really took of in New York. Heading into Asian and European treading all eyes will be on Europe for any news regarding Spain or Greece from the European Finance Ministers meeting in Luxembourg. The GBPUSD is still testing the bottom of its channels around 1.6035 and the AUDUSD is resting at strong daily price support at 1.0170. As always keep your trades KEANE and play it tight.
EURUSD LOVES ITS FIBS
The EURUSD played the Fib range like a master on Monday. The cross began the day by sliding down from the .618 fib from September move lower at 1.3030 before pushing to test the bottom of the fib range at 1.2944. It will take a confirmed break from this range to test broader Support and Resistance zones. A break of the range exposes the 200 day MVA and daily support at 1.2820. A push above the top of the range could lead to a test of last months highs at 1.3170.
Sup 1.2944 1.3170
Res 1.3030 1.2820
Keane Plan….Waiting for a break of the fib range to expose either 1.3170 or 1.2820
GBPUSD SURFING THE CHANNEL LOWER
The GBPUSD aggressively pushed lower to start the week. The pair is currently resting at the bottom of its descending channel. It should be noted that the cross is now once again below the descending trend line that has capped price action for over a year around 1.61. A break or hold of the channel bottom could dictate the price action to begin the week. A bounce back into the channel could expose the pair to push towards the TL at 1.61 followed by the top of the channel at 1.62. A continued break lower targets the 50 fib at 1.59.
Sup 1.6030 1.59
Res 1.6140 1.62
Keane Plan…Watching the price action at the bottom of the channel at 1.6030
AUDUSD HOLDING ONTO THE EDGE
The AUDUSD is trying to find a foothold around the 1.0175/50 support zone. If the cross can find a bit of support at 1.0175 a bit of consolidation could be in the cards. Resistance begins at 1.01 and 1.0325. A break of the 1.02 could lead to a bit of profit taking. A break of price support at 1.0175 opens up the path towards 1.01 followed by parity.
Sup 1.0175 1.01 1.00
Res 1.02 1.0325
Keane Plan…Watching the 1.02-1.0150 range. A solid break of either side could lead to a either 1.0325 or 1.01
USDJPY IN A WEDGE
The USDJPY appears to be in a wedge. The top of the wedge is at 78.80 and the bottom is down around 77.50. Rumors and stories have been slipping out of Japan regarding possible intervention in the pair. In the short-term shorting the pair could be a tricky bet.
Keane Plan…Looking to buy near the bottom of the wedge.
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