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 sharemarkets smashed as investors react to downgrade; Dow down 5.6%
  • Despite downgrade, US bond yields and USD generally rise
  • AUD collapses 300 pips with bulk of selling seen late
  • USD/JPY and USD/CHF both near lows after overnight selling
  • Gold continues higher; breaks above $1720
  • Sell-off likely to continue today

AUD/USD
The Aussie has now broken below 1.0400 and this sets up further bearish moves. Over the medium term, we could see a move back to 0.9800. A break below 1.0100 should be the trigger for further selling, while any move back to 1.0300 is also a selling opportunity.

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XAU/USD
Gold looks like it could do with a short-term pullback and traders will be waiting for a move back to 1695 in order to take new longs. A break of 1725 will also be bullish

EUR/USD
The Euro is right in the middle of the downward sloping trend channel and has been pushed lower as traders continue to favour US debt over Euro debt. In the near term, the market will be looking for a move back to 1.4060.

GBP/USD
The GBP is now approaching support at 1.6250 and traders will be watching this level carefully for any signs of a break lower. A break below 1.6250 sets up a move back to 1.6000.
USD/JPY
The USD/JPY has been sent lower on the back of the downgrade and traders will be now waiting for a move below 77.50 before looking to take new shorts.

SILVER
Silver has been unable to hold on to its gains and the picture looks bearish. A break below 38.00 is likely to see further selling.

USD/CHF
The USD/CHF has finally broken below 76.00 and this sets up the pair for further losses. Any retracement back to 76.00/40 will be seen as a new selling opportunity.

GBP/JPY
The GBP/JPY has weakened over the last 24 hours as traders sell out of risk assets. A break below 126.50 sets up a move for further losses.

AUD/JPY
The AUD/JPY has broken below 80.00 and this now paints a bearish picture. Any move back to 80.00 is likely to be seen as a selling opportunity with targets back to 78.50.

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OIL
Crude saw further losses overnight and now trades with a lower trading bracket, between 80 and 83. Traders will remain focused on the downside.
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