Forex Market Insight 07/07/2011
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:
- Mixed night for currencies, with EUR and GBP lower, but AUD holds steady
- Euro debt concerns intensify as EUR plunges below 1.4300
- AUD bounces from overnight lows, this morning’s jobs numbers beat expectations
- Precious metals continue higher, while oil consolidates recent gains
- Dow still seeing gains, up 0.5% overnight
- Big day for traders, with BoE at 9.00pm, ECB at 9.45pm and US jobs at 10.15pm
AUD/USD
The Aussie has held up remarkably well after Tuesday’s decision to hold rates steady and this must be seen as a bullish sign. Major support is still seen at 1.0600 with minor support at 1.0660. This morning’s strong jobs numbers are likely to add to the bullish momentum.
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XAU/USD
Gold has pushed above resistance at 1515 and this now changes the market’s view to bullish. Any move back to 1515 will be seen as a buying opportunity with the expectation of a move back to 1535.
EUR/USD
The Euro has been driven lower ever since falling back into the symmetrical triangle and the market continues to expect a move back to the lower end of the triangle at 1.4200. In the near term, any move back to 1.4350/80 is likely to be seen as a selling opportunity. Don’t forget ECB decision at 9.45pm with the press conference at 10.30pm.
GBP/USD
The market’s view of the GBP/USD has switched back to bearish after breaking below the rising trend line overnight. Traders will be looking to take shorts on any move back toward 1.6100. Don’t forget BoE decision at 9.00pm.
USD/JPY
No change on the USD/JPY with the pair continuing to grind higher. There’s no reason to believe this trend is likely to change in the near term, so traders will continue to build new positions at lower levels in expectation of an eventual push above 81.25.
SILVER
Silver has benefited from the gains seen in the precious metals space and now looks as if it has broken above medium-term resistance at 35.50/36.00. In the short term, a clear break above 36.30 is bullish and has the potential to shift momentum across the precious metals space.
USD/CHF
The USD/CHF continued to drift lower overnight and traders are eyeing an eventual move back to support at 83.30 in the near term. Tonight’s ADP jobs numbers out of the US will be crucial and could present a buying opportunity down at support near 83.30.
GBP/JPY
The GBP/JPY tried to hold above 130.00 yesterday but the pair faltered at higher levels and this returns the picture to bearish. From here, traders will be looking for opportunities to get short with targets back to 128.30.
AUD/JPY
The Aussie-yen continues to consolidate in a tight range after its break above the triangle last week. From here, traders will be looking for a pull back toward 86.00 before taking new long positions.
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OIL
The crude market continues to trade in an attractive step-up pattern and is currently holding between 95.80/96.00 and 97.50. From here, traders will be looking to buy at the lower end of the pattern or waiting for a break above 97.50 in order to take new longs.
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