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:

  • Markets stage small recovery early but weaker US markets sap confidence
  • Risk currencies, including AUDUSD and EURUSD, see early bounce before reversing at resistance
  • Overnight data mixed, with US home sales improving, but European activity numbers weak
  • Commodities generally weaker as USD remains buoyant. Softs particularly downbeat
  • Gold, oil buck trend and creep higher
  • In equity markets, the FTSE finished 0.4%% higher, while Dow was down 0.2%, the S&P 500 fell 0.1%, while the Nasdaq dropped 0.5%

AUD/USD
The Aussie dollar pushed higher in yesterday’s session before finding resistance up at 1.0580. In the near term, this level looks to have capped gains and the market is expecting the downtrend to continue. Support is now seen at 1.0480 and a break of this level will be bearish.

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XAU/USD
Gold gains continued overnight with the market stalling at 1526 resistance. For traders, the wait is now on until we see a break of this important technical barrier. The more aggressive traders in the market are looking to take shorts up at resistance. Support is still seen at 1480.

EUR/USD
The Euro pushed higher in yesterday’s early trade, moving back to resistance at 1.4135 before rolling back lower. From here, traders believe the path of least resistance is lower, with a move back to support at 1.3970 to 1.4000 now on the cards.


GBP/USD
The GBP/USD found some buyers after moving back above 1.6100 yesterday and this resulted in a counter-trend move back to the downtrend line at 1.6200/20. From here, traders expect the downtrend line will restrain prices and we could see support at 1.6050. 1.6050 has relevance from earlier in the year and traders will be watching this as a major level of support.

USD/JPY
The USD/JPY trading action continues to be defined by the broad ascending triangle. While this is a bullish signal, traders will be waiting for a break of 82.25 before committing to longs. In the near term, the multi-year downtrend is likely to berespected and a move back to 81.50 is a possibility. However, a clear break of 82.25 changes the market view to bullish

AUD/JPY
The Aussie-yen remains in its neutral symmetrical triangle formation and is currently smack-bang in the middle of the range. Traders will be waiting for a move back to either support or resistance and will most likely be looking to play the range. Any break of this pattern is likely to see traders take positions in the direction of the move.

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OIL
Crude oil pushed back to resistance at 100 last night and has since started to roll back over. Traders will be looking to take new shorts up near 100 with the most recent action suggesting further gains are a possibility. Support is now seen at 96.40. Don’t forget crude oil inventories are due at 12.30am AEST.
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