Over the last few weeks the markets had lulled many traders to sleep.  With lackluster volume and muted volatility.  On Tuesday, all it took was a spin of the rumor mill and a bit of news to kick-start the action.  Now the question is if the price action will continue.  The FOMC minutes tomorrow could help keep the game in play.  On Wednesday all eyes will be on the USDCAD and GBPUSD.  The USDCAD spiked lower on Tuesday but reversed with enthusiasm creating a bullish daily candle.  The GBPUSD is flirting with the 50 Fib from the MAy highs.  A hold or break at this level will be key for future price action.  The data flow in Asian and european trading is rather light but once North American trading begins things kick of with CAD Retail Sales followed by the USD FOMC minutes.  Remember to keep your trades KEANE and play it safe.

EURUSD ECB TALKS AND TRADERS LISTEN

The EURUSD broke higher on Tuesday due to news and rumors out of Europe.  A board member from the ECB endorsed an unlimited bond purchase program to tackle the debt crises and it was rumored that Greece may get an extension to meet its budget targets.  Both pieces of info are interesting but really don’t change the situation at hand.  But It appears that traders are happy with any news to spark volatility in thin summer trading.

The pair in now firmly above past resistance at 1.2440.   A hold above this level opens up a test of 1.2560 followed by daily trend line around 1.2460.  A push back below 1.2440 could open the pair up to a move back down towards 1.2330.

Sup   1.2440              1.2330

Res    1.2560            1.2660

Keane Plan….Looking fo a move back down towards the 1.2440 area.  Price action could be telling at that level

GBPUSD THE 50 FIB IS CONQUERED

The path has been slow.  At times it appeared as though the pair would never make it, but Tuesday the GBPUSD moved up and tested the 50 Fib from the May highs.  If the pair can hold above the 50 Fib level at 1.5782 a move up towards 1.5850 could be in the cards.  A rejection at this point could push the pair back into the range which has confined the pair over the last two months.  Support now begins at past resistance at 1.5740 followed by 1.5660.

Sup    1.5740              1.5660

Res    1.5850

Pivot  1.5782

Keane Plan…Watching the price action around the 50 Fib at 1.5782.  A hold above exposes 1.5850, below targets 1.5660

AUDUSD CAN"T FIND IT"S MOJO

The AUDUSD moved higher in Asian and early European trading.  The Reserve Bank Minutes flamed the move by diminishing the prospects of further rate cuts in the near future.  The cross could not catch the momentum move higher the other majors enjoyed against the USD.  All in all the pair is still floating in a rather tight range drifting lower.  Even with todays push higher the pair has created another lower high.  If this high hold we could see a test of ascending trend line support at 1.0415.  Resistance still rest at 1.0530 and the at the daily high 1.0520.

Sup   1.0435              1.0415(TL Support)

Res  1.0520/30

Keane Plan..A hold of Tuesdays lows could lead to another lower low

NZDUSD THE WALLS ARE CLOSING IN

The NZDUSD is trading in a smaller and smaller space.  Over the last few weeks the pair has not been able to gather any true momentum above the .8060 level.  The weekly high at .8140 has contained price action to the topside.  I will be watching either side of this range for a break.  A stare below exposes .80 and a move above opens the door on .8235 once again.

Sup    .8060

Res    .8140

Keane Plan:  Watching for a break of the current range.

USDCAD CHANGE OF PLANS

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The USDCAD may have hit its wall.  The pair moved down to touch a new daily low on Tuesday before reversing sharply.  The pair appears to be in the process of creating a bullish daily reversal pattern.  If the pair reverses ship here we could see a test of the .9950 level in the near future.  Support is still rest at .9860.

Sup  .9860

Res  .9950             1.00

Keane Plan…  Strong daily reversal in the works…could see a retest of parity

USDJPY MISSED OUT ON THE FUN

As the other majors squeezed higher against the dollar the USDJPY remained calm.  The pair basically started the day where it began slightly below 79.50.  The cross has found a bit of resistance around the 79.60 area and is now trying to gather its strength for another attempt higher.  A move back down towards 79.15 could produce another opportunity for buyers to enter the market looking for a push towards resistance at .80.  To reach .80 last weeks high at 79.65 will have to be broken first.

Sup   79.15

Res   79.65                       80

Keane Plan…Looking for a pullback towards 79.15

 

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