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:

  • Greenback smashed lower as Bernanke says further stimulus could be implemented
  • USD decline sees gold smash to new all-time highs and commodities surge
  • EUR stages huge rally on back of USD weakness
  • Dow loses big early gains to close up 0.4%
  • Asian sessions starts on negative note as Moody’s threatens US debt downgrade
  • US employment, PPI and more testimony from Bernanke on the agenda for tonight

AUD/USD
The market will be likely focusing on the downside on the AUD until a clear break of 1.0800. Any move above 1.0800 should trigger further buying with the potential to head back to 1.1000.

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XAU/USD
Gold has broken sharply higher, above the all-time highs, and this now sets up a continuation move into uncharted territory. Any pullback to 1575 is likely to see traders building new long positions. Don’t forget we have a heavy night of economic
news from the US, including the second day of Ben Bernanke’s testimony.

EUR/USD
The Euro has experienced a wild and woolly ride over the last 48 hours and this has seen a massive spike in volatility. As a result, the support and resistance bands are now extremely wide, with support at 1.3960 and resistance at 1.4300. For now, traders will be favouring the downside until we see a clear break of 1.4300.

GBP/USD
The break of 1.6100 is bullish for the GPUSD and traders will now be using 1.6100 as an opportunity to take new longs. However, any break below 1.6100 will be seen as bearish.

USD/JPY
The USD/JPY is still under severe pressure with the pair now trading close to major support at 78.50. A move below that level is obviously bearish, but beware that the market is becoming increasingly concerns that the BoJ could enter the market at anytime.

SILVER
Silver has certainly been well behaved over the past few sessions as it pushed higher after a classic re-test of support Tuesday night. From here, the next level of resistance is seen at 38.90 with a break of that level likely to continue the push higher

USD/CHF
The USD/CHF was smashed lower by Ben Bernanke’s testimony as traders took positions that another round of quantitative easing would result is a much weaker dollar. From here, traders will be waiting for a natural retracement higher to take part in the next move lower.

GBP/JPY
The GBP/JPY has seen a volatile 24 hours but remains within the trading range we identified yesterday. Traders will be waiting for a move owards 128.00 in order to take new short positions.

AUD/JPY
The Aussie-yen’s remains trapped between support at 84.00 and resistance at 85.00. Traders will be looking to play the range in the near term, or wait for a break in either direction and go with the market momentum.

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OIL
Crude has pushed smartly higher on the back of the weakening US dollar and this sets up the picture for further gains. A move above 99.00 is likely to trigger further buying.
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