Keane Insight’s…Thursdays ECB and BoE Trading plan

The Obama rally was short-lived on Wednesday.  As most of the majors appeared to be finding their footing Draghi turned the lights off on the party by suggesting that Germany is beginning to be effected by the Debt Crisis.  After this report most of the majors pushed down to test significant support and resistance zones in North American trading.  On Thursday data will be on the front burner with the release of the AUD Employment Report in Asia followed by the ECB and BoE rate decisions in early North American trading.  Most economist expect both the ECB and BoE to remain on hold thus increasing the possibility of a rebound from current level.  Only time will tell for sure but until then keep your trades KEANE and play it clean

EURUSD WHAT GOES UP MUST COME DOWN...MAYBE

The EURUSD went for a wild ride on Wednesday’s trading.  The pair managed to rally following confirmation of Obama’s victory and appeared set to break higher towards the 1.30 area.  Then news of a slowing German economy and protest in Greece drove the Euro lower.  The decline accelerated into the New York open to test significant support at the .382 fib at 1.2735.  The pair is now once again below the 200 day MVA at 1.2835.  The price action around these levels will be telling.  A hold of the 1.2735/50 zone could produce another test of the top of the range at 1.2885.  If the pair can manage to break below the .382 fib a move towards the 50 fib at 1.26 could be in play. 

Keep in mind the ECB Rate decision and press conference are due Thursday starting at 7:45 ET.

Sup      1.2750/35     (1.2735  .382 Fib)                        1.26  ( 50 Fib)

Res      1.2885

Keane Plan…Watching Price Action around the 1.2750/35 for a hold or break.

GBPUSD BoE on the Way

The GBPUSD followed the roller coaster ride of the majors following President Obama’s victory in the USA.  Sterling has the possibility of outperforming in the near future with expectations the Bank Of England will remain on hold Thursday and leave the Asset Purchase Program target at 375 billion.  Currently the pair has found support at 1.5960.  A break of this level exposes the pair to a test of the .50 fib from the ascent to 1.63 at 1.5903.  A break of either 1.5960 or 1.6040 is needed to knock this pair out of its current range.

Sup   1.5960             1.5900(  50 Fib)

Res    1.6040

Keane Plan…Watching the range for either a break of 1.6040 or 1.5960

AUDUSD SITTING AT SUPPORT AHEAD OF EMPLOYMENT REPORT

The AUDUSD drifted lower with risk on Wednesday but found its footing at the top of the support range between 1.0410/1.0386.  As long as the pair remains above this level a move higher towards 1.0520 is favored.  The AUD Employment Report is due in early Asian trading and could influence Thursdays price action.  Expectations are for an increase .5k and for the rate to stabilize at 5.5%.

Sup   1.0410/1.0386 (50 Fib)

Res   1.0475                 1.0520

Keane Plan….Watching for a hold of the support zone.

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