The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • US equities markets finish best week in two years as optimism rules
  • Strong US manufacturing numbers on Friday help risk currencies close the week at highs
  • Risk currencies like AUD, EUR continue higher to trade near one-month highs
  • Crude, gold both lower on Friday, but industrial metals headed higher
  • Dow gains strongly for fifth day to close 1.4% higher
  • Quieter session expected with US on holiday, local job ads and retail sales the day’s highlights

AUD/USD
The AUD/USD bounced strongly from the lows on Friday after the US’s ISM manufacturing index came in well above expectations. In the short term, with the US closed for Independence Day tonight, ANZ jobs and retail sales will set the tone for the Aussie. Any pullback toward 1.0650 is likely to be seen by the market as a buying opportunity.

[Sign up here to get this report delivered to your inbox daily]

XAU/USD
Gold was hit by heavy selling again on Friday as the market continued to unwind the Greek risk premium. This saw gold break below support at 1490 and this has increased the bearish sentiment on this instrument. Any move back to 1495/1500 is likely to see the sellers remerge with the potential for a move back to 1480.
EUR/USD
The Euro has now broken out of the symmetrical triangle pattern that has dominated trade for the last few weeks and the market will expect that this results in a further push higher. The bulls will be looking to buy around 1.4500/20 with medium term targets back to 1.4650. The US public holiday could see quieter than usual trade.

GBP/USD
The pound continues to see any gains capped as resistance and traders will be looking to favour the short side for the moment. Until 1.6100 clearly breaks, traders will be using any move into 1.6100 as an opportunity to short sell in the expectation of a move back to 1.5920.
USD/JPY
The USD/JPY continues to trade in an uptrend pattern, but it is certainly making it hard work as it grinds higher. For now, support is seen along the rising uptrend line, while a break of 81.25 will be seen as bullish.
SILVER
Silver is now looking increasingly bearish with the most recent price action indicating that silver is now forming a larger symmetrical triangle. After falling sharply into this pattern, the market’s expectation will be that silver should soon break below support at 33.30. A break below 33.30, therefore, will be seen as very bearish.
USD/CHF
The USD/CHF has pushed back into resistance at 85.50 and we’ve seen the pair reverse lower from these levels. From here, traders expect the pair to move back to the lower end of the trading bracket at 83.30.
GBP/JPY
The GBP/JPY has moved back to the top of the trading range at 130.00 and the market is likely to trade back to the lower end of the range at 128.10. The pound has been under extreme pressure over the last two weeks and there is an expectation that we will see further selling on this pair in the near term.
AUD/JPY
The Aussie-yen continued with its push higher on Friday, boosted by the increased risk appetite in markets. With key Aussie
data due today, that will set the tone for this pair, but any move back to 86.30/50 is likely to be seen as buyable by the
market.

[Sign up here to get this report delivered to your inbox daily]

OIL
Oil tried to break lower on Friday but bounced back into the trading range. This is usually seen as a bullish sign, but with the US closed for business tonight, and commodities under pressure, traders will need to see a clear break above 95.80 before committing to long positions.

To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.

Get Free Forex Training Materials from our Forex Education section.