The FOMC announcement came and went today and not much really changes.  Over the last week the majors moved higher in expectation of an announcement today by the Fed of further QE.  The Fed did not deliver but prices finished the day just about where they began.  This is because the Fed eluded to the possibility of further QE in the future.  This sure does seem to be a donkey and carrot game.  But traders seem to enjoy it.

Trading plans are relatively simple at the moment.  As long as most of the majors remain above respective strong daily acceding trend lines the bias must be for a continued move higher.   These support levels come in at 1.2620 for the EURUSD, 1.5580 GBPUSD  and 1.01 for the AUDUSD.  China data is out in early Asian trading that could provide direction.  I will be out of town until the end of next Tuesday.  So remember to watch the ascending trend lines for direction and keep your trades KEANE.

EURUSD LOTS OF TALK LITTLE ACTION

The EURUSD wiggled around on Wednesday but finished the day where it began. The FOMC left the possibility of QE on the table. This may be just enough to keep these markets hoping for more. If that is the case we may see the EUR continue to drift higher until negative news out of Greece spokes the markets or NFP come in higher than expected.

Of course I could be wrong. Lets take a look at the big picture once again. As long as the cross remains above the trend line that has contained price action so far this month the path of least resistance is higher. Trends line support currently comes in around 1.2620. If we break below this level and hold for at least a one four-hour click the first major support the cross would encounter is down at 1.2440. Resistance rest at the weekly highs at 1.2750 and the 50 fib at 1.2784. A break of this zone would expose the 1.29 level.

Sup 1.2620

Res 1.2750/85

Summary: As long as the cross remains above the trend line currently at 1.2620 the pair will push higher.

GBPUSD IT STILL IS A FIB AFFAIR

Consolidation has been the word with this pair. The cross barely flinched today after the BOE Minutes suggested that further action is most likely on the way. It looks as though the as long as the Fed can keep the possibility of further QE on the table this pair will rise. The pair acted very technical Wednesday despite all of the noise that surrounded it during trading. The cross bounced between the 50 and 382 fib from last May’s lows. As long as the pair remains above the trend line around 1.5580 the bias must remain for a move higher. A break o f the 50 fib would expose the 1.59 level. A break of the trend line could lead to a retest of the 1.5450 level.

Sup 1.5580 1.5450

Res 1.5782 ( 50 Fib) 1.59 ( 618 fib)

Summary: Above trend line support (currently 1.5580) the pair should move higher.

 

AUDUSD TESTED BOTH SIDES OF THE RANGE

The AUDUSD had an active day but finished it journey relatively unchanged. The cross tested both support at the .618 fib at 1.0132 and daily price resistance at 1.0220. similar to the other majors as long as the cross remains above trend line support currently at 1.01 the path of least resistance will be higher. If we break the trend line a test of [parity may once again be in the cards. A break of 1.022 targets the 1.0350 level.

Sup 1.0132 1.01

Res 1.0220 1.0350

Summary: Above trend line at 1.01 could target a move up towards 1.0350.

NZDUSD CONSIDERING IT"S NEXT MOVE

The NZDUSD has been trading in a very narrow range over the last few days. The cross has been supported by daily price support at .7890 and resistance has been strong around the .80 level. until either of these level are broken the future direction is unclear. A push above .80 would move the cross back into the consolidation zone from the beginning of the year starting around .8060. A break of .78 exposes the .78 level.

Sup 78.90

Res 80

Summary: In a consolidation zone…No clear direction at the moment. You could play the range.

USDCAD BREAKS BELOW 1.02

The USDCAD isn’t sure what it want’s to do. Oil continues to drop but so does the dollar against the majors. If the dollar could gain traction in the near term we could see a marked move higher in the pair. In the meantime support begins at 1.0135 followed by 1.0050. Resistance begins at 1.0230.

Sup 1.0135 1.0050

Res 1.0230

Summary: Below 1.0230 could lead to a move to the 1.0050 zone

USDJPY MOVED UP A LEVEL

The USDJPY pushed higher in anticipation of some sort of bold action by the FOMC on Wednesday. The Fed provided a bit of action with the extension of operation twist. The Yen has held its gains into the New York close and now find itself back in last weeks range between 79.80 and 79.30. In the short-term I would steer clear of this pair in favoe of other crosses such as the EURJPY , GBPJPY or AUDJPY.

Res 79.80

Sup 78.60