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:

  • Bernanke says stimulus still needed for ‘uneven’ US recovery
  • USD generally weakens on Bernanke statement
  • AUD/USD bounces back after yesterday’s decision to keep rates steady
  • Oil, copper and other key commodities push higher
  • In equity markets, the FTSE closed up less than 0.1%, while Dow was down 0.2%, the S&P 500 fell 0.1%, while the Nasdaq was virtually flat

AUD/USD
The AUD/USD fell about 60 pips following the RBA’s decision to keep rates on hold but bounced back after Bernanke’s statement caused the USD to weaken. Traders are eyeing the 1.0780 level of resistance, while a break below 1.0660 could set up a move to 1.0600.

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XAU/USD
Gold continues to trade in a tight consolidation pattern with the highs at 1555 providing strong resistance. As we have mentioned over recent times, with the all-time highs at 1577, the market is expecting that a strong move to new highs will need some type of fundamental trigger.

EUR/USD
The Euro has pushed right up to resistance at 1.47000/50 and we might see a reversal from these levels. Of course, the Euro’s price action will be driven by any news related to Greece. A break of 1.4700/50 will be bullish.

GBP/USD
The GBP/USD is back at resistance and traders will be looking for signs of a reversal in order to ride prices back to the lower end of the bracket. A break of 1.6470 could see the GBP push back to 1.6550.

USD/JPY
The “round number effect” at 80.00 has continued to provide support with a small bounce seen in the USDJPY overnight. A break of 80.00 remains a distinct possibility and traders will be looking for a move back to 79.60 if a break does occur.

AUD/JPY
AUD/JPY is now looking increasingly bearish as the most recent price action suggests a descending triangle formation. A break of 85.00 will be seen as an opportunity to take new shorts and an increase in pessimism could be the trigger for such a fall.

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OIL
Oil bounced back on that early overnight optimism but the move higher stalled at US$100. If oil continues to respect the range, then traders will be looking to ride the move back lower toward support at 97.50.

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Forex Market Insight 08 June 2011

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