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 see strong reversal in sentiment, helped by Fed statement
  • Fed says rates can stay at record lows for the next two years; bond buying could resume
  • USD weakens across the board as bond yields steady
  • AUD surges nearly 500 pips from the lows
  • USD/JPY and USD/CHF both head lower; USD/CHF trades at 1971 lows; gold eases from all-time highs
  • On the agenda tonight: German CPI BoE at 4.00pm, statement at 7.30pm

AUD/USD
The Aussie has been pushed up to crucial resistance at 1.0400 and traders will be looking for new shorting opportunities up at this level. The 1.0400 level is the neckline of the double-top formation and the market will view this level as critical. Traders are likely to favour the downside until we see a clear break of 1.0400.

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XAU/USD
Gold continued to surge higher and the overnight news from the US Fed is likely to provide further impetus to the gold price. A move back to 1720 will be seen as buyable while, as always, and break to new highs in a selling opportunity.

EUR/USD
The Euro has moved back to the top of the range and the market will now be watching carefully for a break above 1.4400. A break of 1.4400 will be seen as buyable and will change the market sentiment to bullish. Until then, traders will be trying to work the downside under 1.4400.

GBP/USD
The GBP/USD’s megaphone pattern continues to dominate the price action. We’ve seen the pair bounce strongly from around 1.6200 and this should set up a move to 1.6500.
USD/JPY
The USD/JPY has been hit by the ongoing weakness sin the USD and this has caused the dollar-yen to head back to the lows. The market will continue to favour the downside by selling the pair on any signs of strength.

SILVER
Silver has seen a gain overnight as it was boosted by the improved sentiment following the Fed’s statement. The market will be looking to use this push higher as an opportunity to sell with targets back to 37.00.

USD/CHF
The USD/CHF collapsed lower overnight after breaking below 76.00 over the last couple of sessions. This saw rapid selling back to 70.70 which is the lowest level on this pair since 1971. From here, traders will be waiting for a retracement higher, and looking to sell on any strength.

GBP/JPY
The GBP/JPY has bounced from 126.50 and this will see traders looking for opportunities from the long side. Targets would be back to the top of the range at 128.30. However, a clear break below 125.50 will be seen as bearish.

AUD/JPY
The AUD/JPY has moved back to 80.00 and traders will be looking at this move as a selling opportunity. Any reversal from this level sets up a move back to 78.50.

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OIL
Crude pushed back to 83.00 overnight and the market used this move to enter new short positions. Traders will remain focused on the downside and will be looking to take short son a move back to 83.00 or a break below 80.00.
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