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:

  • Markets continue lower as US and Eurozone debt problems continue
  • Late bounce from US investors, thanks to some positive company reports, helps pare losses
  • AUD finds support just above 1.0550, EUR finds support above 1.4000
  • Gold breaks above US$1600, but oil tumbles
  • Dow sees closes the session down 0.8%
  • Today’s focus on RBA minutes at 11.30am

AUD/USD

The Aussie looks to have found support just above 1.0550 and the fact this produced a higher low is suggestive of a change to a more bullish tone. While the RBA minutes, due at 11.30am, will be of key importance in determining sentiment, in the near term, the markets looks as if it wants to push higher.

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XAU/USD
Gold broke through 1600 yesterday and this continues to present a bullish picture. Traders will be looking to build new longs at key support levels, now seen at 1575 (major) and 1595 (minor).

EUR/USD
The Euro found support at lower levels and now looks to be moving back to resistance at 1.4200. Any push back to 1.4200 is likely to be seen as an opportunity to sell the market in expectation of another push lower.

GBP/USD

The pound broke lower overnight before finding support at 1.6000 and traders will now be waiting for a move higher in order to take new shorts. However, the market remains focused on 1.6200 and any move above that level will be seen as a bullish sign.

USD/JPY
No real change on the USD/JPY. The pair is consolidating after its last move lower and any break below 79.00 will be seen a a signal that the market can move back to 78.50. However, sharp move below 78.50 could cause the Bank of Japan to intervene in currency markets, so traders will be looking to be nimble.

SILVER
Silver has continued to push higher in line with the upward pressure on precious metals. Support now rises to 39.50 with a break of 40.80 also likely to be seen as strongly bullish.

USD/CHF
The USD/CHF has moved to the top of the range and traders will be looking to sell these higher levels. The market sees downside targets to 80.80/
GBP/JPY
The market remains focused on the downside on the GBP/JPY. While the best opportunities will be seen on any move back to 128.20, a break of 126.70 will also be seen as bearish.
AUD/JPY
The AUD/JPY found some support around 83.20 and traders will be looking for a move back to 84.20 to take new shorts. Today’s RBA minutes could be a game changer and if the AUD/JPY breaks below 83.20 this will set up a sharp move lower.

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OIL
Crude oil pulled back towards the bottom of the trading range before pushing higher thanks to a late burst of US optimism. From here, traders will be looking to continue and play the range.
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