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:

  • Risk appetite returns as commodities push higher
  • AUDUSD moves back above 1.0500 as equity markets improve
  • Gains seen despite poor result from US durable orders
  • GBP sees strong gains, but EUR hampered by debt woes
  • All 24 key commodities finish higher as USD weakens
  • In equity markets, the FTSE finished 0.2%% higher, while Dow was up 0.3%, the S&P 500 gained 0.3%, while the Nasdaq jumped 0.6%

AUD/USD
The Aussie dollar bounced back overnight after producing a false break below the bullish wedge pattern we have discussed over the last couple of days. The market would see this false break as a bullish sign and the Aussie is now expected to move back to the top of the pattern. The 1.0700/20 level provides important resistance.

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XAU/USD
Along with the rest of the commodities market, gold gained overnight, but the precious metal’s moves were restrained by resistance at 1526. As we open today’s Asian session, gold is trading right on this level, and the future movement of the pair will be determined by how prices react to this level. While above 1526, the picture is more bullish.

EUR/USD
The Euro is presenting a more bullish picture after the last 24 hours, but with European debt woes still at the forefront of investors’ minds, traders will need to see further confirmation before committing to longs. A clear break of 1.1460 would be bullish. In the mean time, traders will be watching resistance at 1.4135/60.

GBP/USD
The GBP/USD broke out of its downtrend line overnight and this now shifts the tone of the market to bullish. Support is now seen at 1.6300 while resistance moves higher to 1.6400. However, traders will be watching the European open carefully, as the bears might take this move higher as an invitation to take new shorts.

USD/JPY
No change here, with the USD/JPY still defined by the broad ascending triangle. Until we see a break of 82.25, traders will continue to take shorts up near resistance. That said, a break of 82.25 will be bullish

AUD/JPY
As we discussed in the USDJPY analysis, the yen crosses have seen very little action recently. The Aussie-yen remains in its neutral symmetrical triangle formation and traders will be waiting for a move back to either support or resistance to continue and play the range. A break higher with the AUDJPY is now looking more likely.

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OIL
Crude oil broke higher overnight along with the rest of the commodities space. From here, the market is more bullish on crude, with the possibility of a move back to 104 not out of the question. Support is seen back at 100.

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