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:

  • Market continue to push cautiously higher as risk appetite returns
  • US markets higher despite US disappointing GDP and sluggish employment
  • USD weakens as traders move back into risk currencies
  • AUDUSD moves back above 1.06, while EUR also gains
  • Commodities ease back with crude falling back to US$100
  • In equity markets, the FTSE closed up 0.2%, while Dow was 0.1% higher, the S&P 500 gained 0.4%, while the Nasdaq jumped 0.8%

AUD/USD
The Aussie pushed higher overnight and is now approaching the top of the bullish descending wedge. From here, traders will be looking for a move back to the lower end of the wedge and therefore will be looking for signs of a reversal around the 1.0640/60 level. Any break above 1.0660 is likely to be seen as buyable.

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XAU/USD
Gold is trading in an increasingly tight band this week after recently breaking above the symmetrical triangle. This type of triangle formation is usually seen as a continuation pattern and traders are looking to take positions in line with the dominant uptrend. In the near term, however, a break of 1515 will be bearish.

EUR/USD
The Euro looks to be forming another consolidation pattern as it sets up for the next step lower. All eyes are on the Greek debt situation with details about the fifth round of assistance to be announced over the next week or so. Traders are currently watching the flag pattern produced over the last two days and any break below 1.4070 is bearish

GBP/USD
The GBP/USD looks to be one of the strongest pairs at the moment as it benefits from the two-day run of USD weakness. The market has now clearly broken above 1.6300 and this is likely to now become support. Minor resistance is seen at 1.6400 with major resistance at 1.6500.
USD/JPY
The USD/JPY broke below the uptrend line overnight and this saw a sharp move lower of around 55 pips. From here, the bears look to be in control, and traders will be watching for a retracement back to 81.70, at the uptrend line, to initiate new shorts. A break of 80.80/81.00 could see further selling.

AUD/JPY
The Aussie-yen remains in its neutral symmetrical triangle formation but this can’t go on for much longer. Traders will be waiting for a break in either direction and will look to trade in the direction of the break. Once a break is produced, traders will be looking for a move to 88.00 on the upside or 84.00 to the downside.

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OIL
Oil fell back to find support at 100.00 overnight and energy bulls are looking to take new positions at this level. The 100 level is now vital for the continuation of the uptrend with a break below 100 likely to produce selling.

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