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 remains in play as week ends on positive note
  • US markets higher; but economic data mixed as house sales down but confidence higher
  • USD stays downbeat with traders focused on risk currencies; USDCHF back at all-time lows
  • AUDUSD trades above 1.07; EUR above 1.44, but both ease in early Monday trade
  • Commodities push higher with crude back at two-day highs
  • In equity markets, the FTSE closed up 1.0%, while Dow was 0.3% higher, the S&P 500 gained 0.4%, while the Nasdaq jumped 0.5%

AUD/USD
The Aussie has opened higher this morning but has pulled back in the first few hours of trade. A pullback to 1.0680 could see buyers step in but, with the UK and US both closed for long weekends, we might trade in a tighter-than-usual band and traders are likely to wait for confirmation before taking new positions.

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XAU/USD
Gold broke out of its consolidation pattern on Friday pushing back toward $1540. A pullback to previous resistance around $1526 would be seen as a buying opportunity by the market. Overall, the bulls are in charge of this market, and traders wouldn’t be considering the short side until a break below $1515.

EUR/USD
The Euro made it up to resistance at 1.4350 before reversing lower and in the near term the market is focused on the downside. With the EU meeting this week to determine the fate of Greece’s next bailout package, we expect to see a volatile week of trading. On the downside, support is seen at 1.4000

GBP/USD
The GBP/USD moved straight back to resistance at 1.6500 and now looks like it is heading lower in the near term. Please note there is likely to be little action on this pair in the next 24 hours with both the UK and US markets closed for public holiday. However, any clear break above 1.6500 changes the view to bullish.

USD/JPY
We have seen very little action of note on the USD/JPY, with the pair consolidating after its break below the uptrend line late last week. The pair is currently consolidating between 80.70 and 81.00 and the market is waiting for a break below 80.70 in order for the pair to take the next step lower.

AUD/JPY
No change on the Aussie-yen as it remains in its neutral symmetrical triangle formation. The market is clearly waiting for a break in either direction, but until that time, there is little to do on this pair. A break in either direction, however, will be quickly snapped up by traders and is likely to generate a big move

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OIL
Oil is consolidating after its move higher to the new trading band between $100 and $102. Traders will be watching the $102 level for signs of a breakout but, as we have discussed already, this might not occur while the US and UK have the day off.

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