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:

  1. Risk sold lower after US Fed stands pat on rates, suggests more stimulus not currently needed
  2. USD rallies on Fed’s higher revised inflation forecasts, EUR, GBP both sharply lower
  3. Aussie reverses overnight from resistance at 1.0640
  4. Commodities ease as greenback strengthens, crude lower on lower growth forecasts
  5. US equities surge, with Nasdaq the leader. Dow and Nasdaq were down 0.7%
  6. Looking forward, UK inflation hearings tonight could produce further pound selling, US jobs at 10.30pm

AUD/USD
The Aussie moved right back to the top of the trading range at 1.0640 overnight before the sellers came back into the market sending the pair back to support at 1.0500. From here, traders will be looking to ride the move back to 1.0640, with the expectation that the trading range will remain in place until we see a clear break in either direction.

[Sign up here to get this report delivered to your inbox daily]

XAU/USD
Gold looks to be heading back to the lower end of the range after rejecting levels above 1555. This could see the precious metal move back to 1530 before getting ready for its next step higher, In the near term, traders will be looking to ride the
move back to 1530.

EUR/USD
The Euro’s looking more bearish after last night’s statements from the US Federal Reserve. The heightened inflation expectations have produced some greenback strength and this has caused the EUR/USD pair to weaken. This suggests the medium term downtrend in back in place and short-term targets are to 1.4200.

GBP/USD
The GBPUSD was smashed lower overnight from resistance at 1.6250 after the BoE minutes were released. This saw the pound drop almost 200 pips overnight and suggests that the bears are in control of this market. From here, traders will be looking to take new shorts on any move back to 1.6100.
USD/JPY
The USD/JPY has finally broken out of its week-long trading range thanks to a burst of strength from the USD. This followed the US Fed’s rate decision and press conference. From here, traders are likely to favour the long side, with resistance seen at 80.70 and then 81.10.

SILVER
Traders had multiple opportunities to get long at support at 36.00 over the last 24 hours with the short-term price movement capped at 36.60. While silver remains above 36.00, the picture remains bullish, and a break of 36.60 is likely to see a
continuation of the gains.
USD/CHF
The dollar-Swiss has benefited from the overnight strength in the greenback and has clearly bounced from support down at 83.30. For now, the market expects a move back to the top end of the range, at 85.50, at which point we are likely to see the
sellers head back into the market.
GBP/USD
The GBP/JPY traded perfectly overnight, rejecting resistance at 130.40 and tumbling back to 129.00. This followed the BoE minutes that suggested the central bank was now less likely to raise rates. For now, the market is keeping a close eye on the 129.00 level as any move below this level is likely to see selling.
AUD/JPY
The Aussie-yen has continued to find sellers up at 85.20/30 over the last 24 hours but the rising short-term support around 84.80 suggests that we might see a break higher in the near term. A break above 85.30 might be seen as bullish but the pair is only likely to target topside resistance at 85.80.

OIL
Oil looks to have shifted into a more bullish phase despite the initial selldown after the Fed statement. Oil’s ability to make a new short-term high at 95.60 is a bullish signal and traders could be looking for buying opportunities around 94.00. A clear break of 93.00 will be seen as bearish.
To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.

Get Free Forex Training Materials from our Forex Education section.