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:

  • Dow narrowly avoids ninth-straight losing session
  • Sentiment sees small pick-up after ADP jobs surprise to the upside
  • Euro, cable push higher on USD weakness
  • CHF sees reversal after SNB cuts rates, warns CHF overvalued
  • Gold trades at new record highs once again
  • ECB, BoE rate decisions tonight

AUD/USD

The Aussie has found some support at 1.0700 and traders will be watching the levels carefully in the near term. Resistance is seen at 1.0800. Traders will be looking to play the range until we see a decisive break in either direction.

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XAU/USD
Gold made new highs overnight, trading close to 1675, before easing back lower. While we trade in uncharted territory, finding levels of support is difficult, with clear support only seen at 1632. A short-term pullback to that level can now be expected, with traders looking for new longs from that level.
EUR/USD
The Euro has seen some short-term strength over the last 24 hours and this brings the pair close to resistance 1.4530. Traders will be looking for new shorting opportunities around that level.

GBP/USD
As we have discussed over recent days, the GBP continues to trade in an indecisive ‘megaphone’ pattern, but while it trades in the patterns range traders will look to play support and resistance. As the pair comes up to resistance 1.6500, traders will be looking to take new shorts at that level
USD/JPY
The USD/JPY has broken below the symmetrical triangle pattern, re-tested the underside of the pattern, and this sets up the pair for further losses. Traders will be looking for a move back to 76.50.

SILVER
Silver has continued higher overnight after breaking above 41.00 and the next level of resistance is seen at 42.00. Traders will be looking to take longs either on a pullback to 41.00 or on a break above 42.00.

USD/CHF
The USD/CHF was pushed higher overnight after the SNB cuts rates and warned that it viewed the CHF as ‘overvalued’. However, the impact from the move didn’t last and traders will now be looking to take new shorts. A move back to 78.00 provides the best value in expectation of a move back to 76.00.
GBP/JPY
The GBP/JPY continues to be trapped in its trading range and traders will look to play support at 125.00 and resistance at 128.00. However, the trend remains strongly lower and traders will favour the downside when opportunities present themselves.
AUD/JPY
The AUD/JPY has broken below major support at 83.20 and the market will expect this level to cap any gains in the near term. Support is seen at 82.10 and a break below this will be bearish. Don’t forget to watch out for BoJ interventions.

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OIL
Crude has been sent sharply lower overnight as traders continued to push the contract downward on fears of an economic slowdown. Crude has now fallen into a new trading bracket with support at 91.20 and resistance 93.50. Traders will be looking to favour the short side, either on a retracement higher or a break of support.
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