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 continue higher ahead of tonight’s EU meeting; US equities gain more than 1.0%
  • USD sees marked weakness as flight-to-safety flows ease
  • EUR breaks above 1.4450 for the first time this month
  • AUD/USD breaks above 1.0400; gains more than 110 pips after break
  • Gold, crude both push higher overnight
  • Tonight: EU leaders Merkel and Sarkozy meet for crucial Eurozone discussions

AUD/USD
Now the Aussie has broken out of the bullish ascending triangle and is above 1.0400, the market is taking a more bullish approach to the AUD/USD. Traders will be focusing in the upside and any pullback to 1.0400 will be seen as buyable. RBA minutes due at 11.30am and this could see some weakness from the Aussie.

XAU/USD
Gold bounced from just above support at 1720 and this bullish move sees support rise to around 1750. Gold continues to look very bullish and the market will be expecting a re-test of the all-time highs around 1820.
EUR/USD

The Euro broke above 1.4450 overnight thanks to a resurgence of USD weakness. The market has been watching this level for weeks and the break above this level is likely to change the market sentiment to more bullish. Any pullback to 1.4400 will be seen as a buying opportunity.

GBP/USD
The GBP/USD broke above 1.6300 overnight and this changes the view to bullish. A pullback to 1.6300 will be seen as a buying opportunity. A break of 1.6410 will also be seen as a buying opportunity, with targets back to 1.6500.

USD/JPY
As we have noted over the last few days, there’s been no real change on the USD/JPY. The pair is still defined by resistance at 77.00/20 and support at 76.50.

SILVER
Silver saw some gains overnight as gold rose, but silver remains trapped under vicious resistance at 40.00/40. Silver continues to catch its breath after the heavy selldown in May and it looks as if traders are reluctant to commit after the sharp losse sin May. A clear break of 42.00 is needed for silver to take flight to the all-time highs at 50.00.

USD/CHF
The USD/CHF rejected higher levels at 80.00 before losing around 200 pips. This now sets up the 80.00 level at clear resistance, but a move above that level would force the market to become more bullish. Overnight, there were increasing rumours that the SNB is working on a fixed peg to the Euro – a move that would see a sharp move higher in USD/CHF.
GBP/JPY
The GBP/JPY has moved powerfully up to 126.00 and this could suggest an upside breakout is on the cards. Any break above 126.00 will be seen as bearish, but until we see such a break, traders will be focusing on the downside.

AUD/JPY
The Aussie-yen is forming a similar pattern to the AUDUSD with a bullish triangle seeing a break higher. A move back to 80.0 will be seen as buyable. RBA minutes due at 11.30am and this could see some weakness from the Aussie.

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OIL
Crude saw a solid bounce from the lower side of the triangle formation and is now knocking on the door of 88.00. A break of 88.00 will be seen as a buying opportunity with medium term targets to 91.00.
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