The sparks were not particularly flying last week in the FX markets. The trading environment was slow and choppy. The same could follow into next week unless some sort of catalyst shakes up the markets. Heading into the beginning of the week I will be looking to continue to play the ranges until they break. I will also be watching the hourly triangle in the USDCAD and EURJPY. That's it for now, enjoy the rest of the weekend and remember to play it KEANE.
EURUSD LACKLUSTER TRADING
The EURUSD has drifted over the last few weeks in an uninspired range. The top of the range is created by the .618 fib from the recent decline at 1.3030. The bottom is stacked between 1.2835/00. Until this range breaks the only thing to do is play the inside.
Keane Plan…Looking to play the range until it breaks
GBPUSD TECHNICALS ABOUND
From a technical standpoint the GBPUSD had traded very purely as of late. The pair moved down last week to test the .382 fib from September’s advance and then slowly drifted higher towards the descending yearly trend line at 1.0670 before bouncing a tad lower on Friday. Heading into next week resistance begins at the TL at 1.0670 and support begins at the .382 fib at 1.60. A hold of the TL to start the week could lead to a test of the 50 fib from September’s advance at 1.59.
Sup 1.60 1.59
Keane Plan…Watching Tl support for a push lower towards the 50 fib.
AUDUSD DID SOMEONE SAY 50 FIB RANGE
The AUDUSD managed to bounce from its lows around 1.0150 for the majority of the week. The cross is currently in a range between 1.03/.0325 and 1.0175/50. A break of the range to the top of the hits the 50 fib from the move lower relatively quickly at 1.0385. A break of the bottom of the range runs into the 50 fib from September’s move higher around 1.01. At the moment playing the range looks to be in order.
Keane Plan…Playing the range until it breaks
NZDUSD Tight Shallow Week
It was lack luster trading week for the NZDUSD the pair remained in a tight range throughout. The entire span of the weekly range was only 90 pips. Heading into the new week my focuses will be on a break of either the top or bottom of the range. A break to the top at .8235 exposes last months high at .8235. A push below the bottom at .8140 could expose the .618 fib from September’s move higher at .8080.
Sup .8140/20 .8120(50 Fib) .8080 (618 Fib)
Res .8235 .8350
Keane Plan… waiting for a break of last weeks range between .8145 and .8235
USDCAD TRIANGLE TRIANGLE TRIANGLE
On the hourly chart the USDCAD is closing in to the end of a strong hourly triangle. The bottom of the triangle is currently at .9770 and the top is around .9820. A break of the triangle could expose .9885 to the topside and .9735 to the bottom.
Sup .9770 .9735
Res .9820 .9885
Keane Plan…Waiting for a break of the top or bottom triangle
USDJPY SLOWLY PLAYING THE WEDGE
If you enjoy slow motion trading this is the cross for you. The pair could not harness much momentum last week and until the pair breaks out of it current wedge between 78.75 and 77.50 the only thing to do is play the inside. Any move down towards 77.50 could find buyers with rumors of intervention from the Bank of Japan making the rounds once again. Shorting at the top of the wedge could also be considered bit I would hesitate to short the pair at these level.
Keane Plan….Looking to buy tests of the bottom of the wedge.
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