Forex Market Insight 05/31/2011
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:
- European markets flat with Greece debt on focus
- AUDUSD resumes recovery to make fresh highs
- Japan’s April jobless rates climbs to 4.7%
- Gold holds steady above 1535/oz, may advance on European Debt, Inflation concerns
- Silver Futures Climb, Oil closed at over $100 a barrel
- The equity markets in the US and UK were closed, the Nikkei finished the session down 0.18%
AUD/USD
AUD held 1.0680 support overnight identified in yesterday’s morning report to break higher in early Asian trade above 1.0710 static resistance area. Traders are calling for an increase in bullish momentum with a continuation towards strong 1.0840 area, ahead of further gains.
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XAU/USD
The yellow metal held steady overnight sustained by its safe haven role amid continuing debt woes in the Euro zone. Traders still favour buying dips into the $1523 area for new push toward $1540 and beyond.
EUR/USD
Dealers have been reporting EUR demand in the crosses especially EUR/JPY in early Asian session. We hear market rumours of large stops above 1.4365 area which if pierced traders will target the 1.4410/20 area. Buyers should emerge back down at 1.4250 area.
GBP/USD
Sterling decline from 1.6510 high on Monday has been limited at 1.6450. Both 1 and 4 hour charts show increasing bullish momentum and once above 1.6510 expect the pair to extend to the upside over the coming sessions.
USD/JPY
Once again resistance at 81.00 highlighted in yesterday’s report has held overnight and the pair is gaining bearish momentum. Traders are now looking for the downside to test 80.00/20 level in the upcoming sessions. Any rally to 81.35 area should see fresh sellers enter the market ready to ride next wave lower.
AUD/JPY
The AUD/JPY has been consolidating and remains in its neutral formation. Traders are waiting for a break of the triangle, this offering great opportunities for traders.
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OIL
Oil is still in consolidation mode as market in the US and UK were on holiday yesterday. The trading band has stayed steady between $99 and $100. Traders are waiting for a breakout on the topside at the $101 level which as we are starting fresh could lead to Oil continuing its move to previous resistance at $102.
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