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 appetite returns with a vengeance as Dow climbs 423 points
  • Markets helped by better-than-expected weekly US jobs numbers
  • USD/CHF sees massive reversal after Swiss National Bank warns of potential peg to Euro
  • AUD trades back towards 1.0400 despite yesterday’s poor jobs numbers
  • Gold comes back down to Earth after falling US$80 from the highs
  • On the agenda today: Eurozone industrial production at 7.00pm, US retail sales at 10.30pm

AUD/USD
The Aussie is looking a little more solid at these lower levels with the AUD/USD forming a neutral symmetrical triangle over the last 48 hours. While the market will remain focused on the downside in the very near term, the break higher above 1.0300 looks more positive and a break above 1.0400 is likely to change the market’s view to bullish.

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XAU/USD
Gold pulled back over the last 24 hours after making new all-time highs in yesterday’s Asian session. Gold looks to have found support at 1740 and traders will be looking to take new longs around this level in expectation of a move back to the highs.

EUR/USD
The Euro is back in the middle of the range at the moment and traders will be looking a move to the extremes before taking new positions. A move back to 1.4400 will be seen as a selling opportunity while any move back to 1.4130 is likely to bring out the buyers.

GBP/USD
The GBP/USD looks to be trapped in a new trading bracket between 1.6110 and 1.6220. Traders will be focused on the short side and will be looking to sell near 1.6220 or on a break below 1.6110.

USD/JPY
Traders have continued to use any move back toward 77.20 as an opportunity to sell over the last 24 hours and this remains the favoured strategy in the near term. Any break below 76.50 is also likely to trigger further selling.

SILVER
Silver remains in the broad trading range and traders will continue to work the range in the near term. Silver is likely to be supported in the near term while gold trades near its highs, but a strong reversal in gold is likely to see heavy selling in silver also.

USD/CHF
The GBP/JPY is clearly in a trading bracket between 124.30 on the upside and 123.40 on the downside. Traders will be looking to play the range with a focus on taking new shorts. GBP/JPY

AUD/JPY
Like the AUD/USD, the Aussie-yen is looking as if it is building some strength as lower levels, but traders will remain focused on the downside until the AUD/JPY can break above 80.00. A break above 80.00 will be seen as bullish.

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OIL
Crude has gained 3.00 since breaking above the bullish ascending triangle, but the picture is still clouded for oil. Crude is in a substantial downtrend and any further weakness in sharemarkets is likely to see further losses from crude. A move back to 83.00 is a possibility today.
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