EURUSD: Testing The Heat At The Range Top

by Forex Trading-Pips

The only way to describe the last month, week and day, in the FX Markets is as dull.  Things could begin to pick up next week.  The week is full of economic reports and political events all over the FX spectrum.  The AUDUSD will kick things of on Tuesday with the Reserve Bank Rate Decision, followed by the GDP report on Wednesday and the Employment report on Friday.  On Thursday the ECB and BoE rate Decisions are due.  And finally, the NFP report will be delivered next Friday.  These data points combined with Fiscal Cliff issues could knock the majors out of the current congestion ranges.  Everyone have a great weekend and remember to keep your trades KEANE.

EURUSD TESTING THE HEAT AT THE RANGE TOP

Chart

Compared to the other majors the EURUSD traveled in a rather large range last week.  The pair tested the bottom of its range at 1.228 and the top at 1.0320.  The cross finished the week in the resistance zone between 1.03/1.0320.  A break of this zone favors a push higher towards 1.3120.  The ECB rate decision is due next week and more meetings of Eurozone ministers and bureaucrats are in the card.  Headline risk will be in full swing once again.

Sup   1.2885
Res    1.0320                    1.3120

Keane Plan…Watching the Price action in the resistance zone….

GBPUSD TICK TICK TICK….Somethings Got To Give

Chart 

The GBPUSD has bounced around in a tight range this week.  The cross threatened to break lower on Wednesday only to sharply reverse course.  The pair has now painted itself into a corner, formed by a wedge.  The top of the wedge is at 1.6050 and the bottom rest on the ascending trend line around 1.60.  The cross also has a daily descending trend line intersecting the cross around 1.6050.  The BoE rate decision is due on Thursday and could provide a bit of volatility.
Chop Zone 1.6050/1.60

Res               1.6180
Sup               1.5960          1.5903( 50 Fib)

Keane Plan…Waiting for a break of the  Chop Zone/Wedge.   Will let the price action tell me which way this pair wants to go.

AUDUSD THE FIREWORKS BEGINS NEXT WEEK

Chart 

Price action was muted last week in the AUDUSD.  The pair spent the majority of its time in a tight 70 pip range.  This could change next week, with the release of multiple data points for this pair.  The fireworks begin on Tuesday with the release of the Reserve Bank Rate Decision.  Where a rate cut is widely anticipated.  The data continues to flow on Wednesday, with the release of the GDP figures followed by the employment report on Thursday. This data should assist in knocking this pair about a bit and give trades a better understanding of the current state of the economy.
To finish the week the pair managed to break below trend line support and range support at 1.0435.  The cross could not gather the momentum to continue its move lower, but the longer the cross remains below this level favors a larger move lower.  Support begins at 1.0350 followed by 1.03.  A move back above the ascending TL could lock the pair back into the chop zone between 1.0485/1.0430.

Sup              1.0350                    1.03
Res               1.0430/.485

Keane Plan…Favoring a move lower from this point.