Keane Insight’s….Tuesday’s Trading Plan

The major broke lower against the dollar in European trading.  The follow thru was limited in New York trading as many traders still remain sidelined due to hurricane Sandy.  Heading into Asian trading all eyes will be on the Reserve Bank of Australia Rate Decision.  The statement following the decision could add insight to the RBA's plans in the near future.  Below is a rundown of the majors to kick of the week.  As always remember to keep your trades KEANE and play is clean.

 

EURUSD RUNNING INTO SUPPORT

The EURUSD managed to break below daily price support at 1.2825 in European trading.  The Fibs are below and could provide support.  The .382 Fib from the advance to 1.3180 rest at 1.2735.  This level combined with daily price support at 1.2750 could be difficult to crack.  But, it should be kept in mind that the cross is now below the 200 day moving average at 1.2825.  A hold below this level could signal for further loses. 

Sup    1.2750/35

Res    1.2825  (200 Day MVA)

Keane Plan….Would like to a see a pullback to Res at 1.2825.  Price action will be key at this level.

GBPUSD BREAK THE RANGE

The GBPUSD manged to break below the bottom of the range that had contained it for the last few week s at the .382 fib at 1.5999 in early European trading.  The pair did not travel far before running into daily price support at 1.5960.  A bounce at this level will find resistance at past support at 1.60.  Keep in mind that the 50 fib lurks below these levels at 1.5903.  Any push down to these levels could find buyers.

Sup    1.5960                    1.5903 (50 Fib)

Res     1.60   ( .382 Fib)

Keane Plan….Waiting for the price action to play it self out.  Looking for a move to either the .382 fib at 1.5999 or the .50 fib at 1.59

AUDUSD RBA ON DECK

The AUDUSD drifted in a narrow range during New York trading.  This will most likely remain the case ahead of the Reserve Bank of Australia Rate Decision at 3:30 GMT or 10:30 ET.  After the data release the levels to watch are clear.  Resistance is stacked between the 50 Fib at 1.0386 and daily price resistance at 1.0410.  Support begins at the ascending Trend line at 1.0325.  It will take a break of this wedge to set the pair in motion.  A break above the resistance zone could opens up the 1.0520 level.  A push below exposes 1.0250.

Sup             1.0325              1.0250

Res              1.0386/1.0410                1.0520

Keane Plan…Waiting for the RBA for clearer picture of sentiment.

NZDUSD BREAKS TL SUPPORT

The NZDUSD managed to break below the descending trend line that has capped price action in early trading Monday.  Once again the pair failed to produce much follow thru.  In the short-term it would take a break of the of daily price support at .8230 to spark a move lower.  The next major level of resistance is not until .8150.  The pair still has support layered between .83 and .8350. 

Sup   .8230                .8150

Res   .83/.8350

Keane Plan…  The TL hasn’t produced much of a follow thru…Watching the larger range.

USDCAD TICKLING THE FIBS

The USDCAD seems content to consolidate between the 50 Fib and .318 Fib from the decline from 1.0450.  The 50 Fib rest at 1.0040 and the.382 fib is at .9943.  It will take a break of this range to spark a larger trend.  Seller could emerge with a retest of the 50 Fib pullback.  At the moment similar to the USDJPY the range appears to be your friend.

Sup     .9943          .382 Fib

Res      1.0040       .50 Fib

Keane Plan….Looking to play the inside of the range.

USDJPY BUMPING INTO THE JUNE HIGHS

The USDJPY is consolidating between two strong support and resistance zones.  The pair could drift sideways between these levels for some time.  Resistance begins at the June highs at 80.60 and followed by daily price resistance at 81.  Support is created by daily lows from three days last week at 79.50 and the spike low from last week at 79.25.   This range could play for the majority of the week.

Sup    79.50/25

Res    81/80.60

Keane Plan….Looking to play the range.

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