The majors lost ground against the dollar in European and early North American trading. A few of the pairs are resting on significant support and resistance levels. The GBPUSD is testing keys support at the 50 fib at 1.5903 as is the NZDUSD at .8132. Heading into Asian trading all eyes will be on the AUD CPI report at 8:30 and the China PMI report shortly after. The AUDUSD could show the most impact from this data and is currently resting on an ascending trend line around 1.0250. Below is a more detailed look at a few pairs of interest. Remember to keep your trades KEANE and play it safe.
AUDUSD Balancing Act
The AUDUSD followed risk lower on Monday and the pair broke below key support at 1.03. On Wednesday the release of the AUD CPI and China PMI reports could influence the future direction of this pair. The cross is currently resting on top of the ascending trend line from October 9th. A break of this level opens the pair up to another run at 1.02 followed by October's lows at 1.0150. If the data is encouraging the cross could see a rebound from Tuesdays loses. Resistance starts at 1.03 followed by 1.0386.
Sup 1.02 1.0150
Res 1.03 1.0390
Keane Plan...Will be watching the PX at the descending trend line at 1.0250
NZDUSD Monthly Lows Must Go
The NZDUSD broke lower with risk on Tuesday. The cross is currently resting below the 50 fib from September's advance at .8132 but above the monthly lows at .8110. A break of the .8130/.8110 level could open the pair up to a run towards the .618 fib at .8080 followed by .80. If the cross manages to find traction at this level the first level of resistance starts at the .618 fib at .8185.
Sup .8130/.8110 .8080
Keane Plan. Looking for a break of the .8130/.8110 support zone.
GBPUSD 50 Fib Is Holding Things Up
The GBPUSD broke below the ascending trend line that had guided the pair higher over the last two weeks in North American trading. The pair moved down to test the next rung on the ladder at the 50 fib from September's advance at 1.59. A break or hold at this level will be telling heading into the remainder of the week. A push below this level ups the cross up to test of the .618 fib at 1.5808. A hold of this level could see a bounce back towards 1.60.
Sup 1.59 (50 FiB) 1.5808 ( 618 Fib)
Res 1.60 (.382 Fib)
Keane Plan....Watching for a break or hold of the 50 Fib.
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