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. Irish debt downgraded to junk as Eurozone debt crisis deepens
  2. Euro falls to four-month low against USD
  3. GBP tumbles on poor CPI reading
  4. Commodities lose ground, but gold pushed towards all-time highs
  5. Dow loses 0.5% on Eurozone woes
  6. Chinese data, due at 12 noon, will be crucial for today’s action

AUD/USD

The Aussie continued lower yesterday, before staging an overnight bounce. This provides traders with the opportunity to get short back near resistance at 1.0660/40 in expectation of a move back to support at 1.0550.

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XAU/USD

Gold has continued higher with the break of 1555 sending gold up to the all-time highs at 1575. From here, traders will be waiting for a break of the all-time highs around 1575/80 as this is likely to trigger further buying.

EUR/USD
The Euro broke severely through support over the last 48 hours and this has seen a sharp move lower. We have since seen a rebound back to resistance at 1.4050 and from here traders are likely to take new shorts in expectation of a move back to support at 1.3850

GBP/USD
GBP/USD has pushed back to resistance after the heavy selling following the poor CPI number. From here, traders will be looking to short around 1.5950 in expectation of a move back to 1.5780.

USD/JPY
The USD/JPY saw some monumental selling over the last 24 hours after it broke below the uptrend line. We saw a sharp move below 79.00 post the New York session and from here traders will be looking to short sell on any signs of strength.

SILVER
Silver traded perfectly overnight, coming back to support at 35.70 before kicking back higher. From here, traders will be looking to buy on a break of 36.80, a move that could be trigged by a push to all-time highs in gold.

USD/CHF
The USD/CHF has now broken below support and traders will be looking to participate in the next down move. The Fed chairman’s testimony tonight, due from 12.00am, will be high impact tonight.

GBP/JPY
The GBP/JPY faced heavy selling over the last 24 hours after a poor reading from UK CPI. Traders will be waiting for a move back toward resistance at 128.20 before looking for new shorts.

AUD/JPY
The Aussie-yen’s pretty tough to pick after breaking lower but quickly moving back into a more neutral space on the chart. Traders will be waiting for a break in either direction, with a break below 84 bearish, but a move above 85 seen as more bullish.

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OIL
Crude bounced higher overnight, but the market is unlikely to become too bullish until we see a break of 97.00. If crude starts to head lower, the first target will be toward 93.50.

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