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 reverse sharply lower after shock US jobs numbers
  • Risk aversion seen as Down drops over 200 points
  • AUD falls 150 pips to trade back at key support
  • EUR, GBP both sharply lower as USD strengthens
  • Gold only commodity to rise as markets see flight to safety
  • Key European markets closed tonight, with all eyes on tonight’s US jobs numbers at 10.30pm AEST

AUD/USD
The AUD/USD rose again to 1.0750 only to slide with stocks and commodities in the American session to find support around1.0600 area. Loss of 1.0580 support today is needed to confirm bearish continuation while today’s retail sales figures shouldgive us some more nformation as to where AUD is headed over upcoming sessions.

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XAU/USD
Gold continues to draw strength from the weakness of the US economy and the possibility of QE3 market rumors. Traders are looking to buy dips around 1530.00 level looking for next push higher. Only below 1525.00 would reverse bullish outlook.

EUR/USD
EUR was hit again overnight by yet another downgrade to Greece by rating agency Moody’s. While well bid during Asian and European sessions hitting fresh four-week highs at 1.4450 a strong reversal led to pair to plunge nearly 150 pips. On a widerscale 1.4270 area should provide good entry for the bulls while the bears will be looking to short around 1.4470.

GBP/USD
GBP turned lower across the board during European hours following weak economic data in the UK. As highlighted in yesterday’s morning report a loss of 1.6300 is seen as a very bearish signal while only above 1.6500 area will reverse our bearish outlook.

USD/JPY
Yen soared overnight on “miles worse” than expected US data and increased safe haven demand. With indicators heading south on both 1 and 4 hour charts a clear break below 80.60/70 support should extend the fall.

AUD/JPY
AUD/JPY made a sharp reversal overnight as investors fled from risk currencies and back to the safe haven of Yen seeing the cross close 110 pips below it’s starting price on Wednesday. A break of overnight lows 85.70/75 level will be deemed overwhelmingly bearish.

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OIL
Oil has managed to hold above US$100 over the last couple of hours but it desperately needs to maintain this level for the bulls to stay in control. A move back below US$100 would be seen as bearish.

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