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:

  • US equity markets see strong gains helping risk instruments higher
  • Gold sees further losses are volatility increases
  • AUD/USD continues higher after strong GDP numbers; focus on today’s jobs result
  • EUR, GBP see small gains; tonight’s central bank decisions
  • Dow sees first winning day for September with 2.5% gain
  • Today’s releases includes Aussie jobs at 11.30am, BoE and ECB rate decisions, US employment at 10.30p

AUD/USDXAU/USD
The AUD/USD looks to have found some support at 1.0485 and this now sets up a move to the recent highs at 1.0780. The 1.0600/20 levels can be seen as intra-day support for short-term longs.

XAU/USD
The increasing volatility in the gold market can be seen as a warning and traders will be more cautious taking positions in this market in the near term. A break below 1800 will be seen as bearish, while a move above 1840 will be seen as bullish.

EUR/USD
The EUR/USD focus remains to the downside with resistance seen at 1.4020/50. Tonight’s ECB decision, at 9.45pm, has the potential to add bearish pressure to this pair. A break of 1.3970 will could trigger further selling.

GBP/USD
The GBP/remains under pressure after breaking below 1.6000 and traders will continue to focus on the downside. A move back to 1.6050 will be seen as a selling opportunity. Tonight’s BoE meeting, at 9pm, is likely to have little impact, with no change in policy widely expected.

USD/JPY
Some of the excitement has clearly come out of the safe haven and the USD/JPY’s move to the topside reflects this. That said, traders are likely to remain focused on the short side, using any move to 77.70 to take new shorts.

SILVER
Some of the excitement has clearly come out of the safe haven and the USD/JPY’s move to the topside reflects this. That said, traders are likely to remain focused on the short side, using any move to 77.70 to take new shorts.

USD/CHF
No change on the USD/CHF with the market still waiting to see the way traders handle the SNB move from Tuesday. We expect this market to remain quiet in the near term with traders still recovering from the SNB-induced shellshock.
GBP/JPY
The GBP/JPY remains trapped near the lows and we’ve seen volatility levels drop. From here, traders will be looking for a move back to resistance before considering new shorts or wait for a break below 123.00.

AUD/JPY
The AUD/JPY now appears more bullish and traders will be waiting for a break above 82.85 to initiate new longs. A pullback to 81.00 could also be seen as buyable.
OIL
Oil has pushed up to resistance and traders are likely to use the 90 level as an opportunity for new shorts. These offer good risk-return, but a break above 90 changes the view to bullish.

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