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:

  • Equity markets see largest falls since depths of GFC as Dow falls 5%
  • AUD/USD falls 300 pips in 24 hours as fears grow of US double dip
  • Euro and pound both sharply lower; EU debt fears front-and-centre
  • Japanese intervention short lived; most pairs, excluding USD/JPY, trading back near lows
  • Gold pulls back from record highs; crude crunched
  • Tonight‟s US non-farm payrolls will be more crucial than ever

AUD/USD
The Aussie saw an extreme move lower overnight as markets sold out of risk instruments. We could see a small bounce from 1.0400 which is an absolutely crucial level for the Aussie dollar, but traders will continue to focus on the downside. A break of 1.0400 could set up a medium-term move to below 0.9800.

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XAU/USD
Gold has been sent lower overnight as investors closed out of speculative longs. At times of real crisis, don‟t be surprised to see gold ease back as investors are forced to close numerous positions. Traders will be looking for a move back 1632 before considering new longs.

EUR/USD
The Euro has broken below the flag pattern overnight and this sets up further losses on the Euro. Any retracement up to 1.4150 will be seen as a selling opportunity while a break below 1.4000 is likely to see further selling.

GBP/USD
The GBP headed back to the lower end of the indecisive „megaphone‟ pattern overnight and traders will now be waiting for a break below 1.6200 to take new short positions.
USD/JPY
The USD/JPY was forced higher yesterday after the BoJ intervened in currency markets but the pair was unable to push above 80.00. Traders will continue to focus on the downside with 80.00 seen as the best level for new shorts.

SILVER
The sentiment towards silver has seen a 180 degree turn after the precious metal saw heavy selling overnight. Silver has now fallen below the flag pattern and this sets up a move to 38.30 in the near term.

USD/CHF
The USD/CHF was sold lower after pushing back to 78.00 and traders are now waiting for a break below 76.00 before taking new shorts. A bounce from 76.00 could see a move back to 78.00 and traders will be looking to sell such as move

GBP/JPY
The GBP/JPY surged higher after the BoJ intervened in the currency markets. The move brought the GBP/JPY back to resistance at 130.00 and this has been seen as an opportunity for new shorts. A break below 128.20 will also be seen as bearish.
AUD/JPY
The AUD/JPY saw a sharp move higher on the back of the BoJ‟s move, but came quickly back down. As per yesterday‟s report, support is seen at 82.10 and a break below this will be bearish.

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OIL

Crude saw another massive move lower overnight. In fast-moving markets like these, the only real option is to wait for small retracements higher in order to take new shorts, or to sell on any new break lower.
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