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:

  • Risk aversion returns as French banks under pressure
  • Fed’s impact short-lived as sharemarkets suffer heavy losses; Dow loses 4.6%
  • AUD sharply lower after falling 250 pips over 24 hours
  • Further invention overnight as Swiss National Bank enters market
  • Gold’s incredible move continues; breaks above 1800 in early Asian trading, nears 1820
  • On the agenda today: Aussie jobs at 11.30am (10k expected) and US jobs at 10.30pm (401k expected)

AUD/USD

Resistance at 1.0400 worked a like a treat over the last 24 hours with the Aussie tumbling over 250 pips from this level. Until we break above 1.0400, traders will be focusing on the downside and there is the potential to move back to support at 0.9930. A move back to 1.0260/300 could be seen as a selling opportunity.

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XAU/USD
Gold is simply unstoppable at the moment with the precious metal producing a $35 gain after breaking to new all-time highs above $1780. Buying any break to new highs remains the winning strategy for gold traders and the market will be waiting for a move above $1815 to take new longs. Any pullback to $1780 will also be seen as buyable.

EUR/USD
Traders who sold at the top of the trading range over the last 24 hours should have had profitable nights with the Euro tumbling on fears about the health of French banks. These worries saw the Euro fall over 250 pips and now brings the single currency back to the lower end of the trading range. A clear below 1.4130 sets up further losses, with targets to 1.4050.

GBP/USD
The GBP/USD has finally broken below the megaphone pattern that has defined trade over the last two weeks and this now changes the market’s view to bearish. Further losses are expected on this pair, with the best level for shorts seen on any move back to 1.6200 in expectation of a potential move to 1.6000.

USD/JPY
The USD/JPY has paused at the all-time lows with traders naturally reluctant to push dollar-yen under 76.50. That said, any move back to 77.00/20 is likely to be sold, while any break below 76.50 has the potential to trigger extreme selling.

SILVER
Silver’s trading in a range at the moment with no clear direction. Silver hasn’t participated in the up-move like gold as this might act as a bit of a warning for traders. Until we see a decisive move in either direction, traders are likely to play the range in the near term.

USD/CHF
The SNB’s overnight attempt to intervene in currency markets had little tangible effect and this signals just how bearish this pair is at the moment. Traders will be looking at the 73.30 zone as the sell region.

GBP/JPY
Any signs of GBP strength have been overwhelmed in the last 24 hours as the Euro debt crisis re-ignited. Traders will be focused on the downside with the 124.30 region seen as the sell zone.

AUD/JPY
Traders that sold at 80.000 yesterday should have had a profitable 24 hours. The pair is now at the middle of the range and traders will be waiting for a move to either side of the trading range to look for new opportunities. A bounce from 76.50 could
be a possibility

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OIL
Crude is forming a bullish ascending triangle at lower levels and brave traders will be waiting for a break above 83.00 to take new long positions. That said, crude’s been in a steep downtrend and while we trade below 83.00, the picture remains bearish.
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