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 another calm night as last week’s volatility dies down
  • USD resumes decline as markets focus on structural dollar weakness
  • GBP surges higher despite bearish numbers from jobs, BoE minutes
  • USD/CHF heads back lower as traders underwhelmed by SNB move
  • US markets end the session lower after three monster days of gains; Dow closes 0.7% lower
  • Tonight: US data will be key with CPI and employment due tonight

AUD/USD
The Aussie dollar continued higher overnight after breaking above resistance at 1.0520. The pair found resistance up at 1.6000 and we might see a short term pullback in the Asian session. A pullback to 1.0520/480 will be seen as a buying opportunity.

XAU/USD
Gold’s moved into an extremely tight consolidation phase as we approach the all-time highs and this suggests we are seeing a little more caution from the bulls. A little nervousness is understandable as we approach the all–time highs, but traders are still likely to focus on the long side around 1775/80.

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EUR/USD
The Euro presents a mixed picture, because while the technical suggest the Euro is due for a push higher, there are multiple layers of resistance above the current price. A break above 1.4540 has targets to 1.4580 and then 1.4690. The bears will be looking to sell around 1.4540.

GBP/USD
The GBP/USD surged higher overnight despite generally gloomy economic data from UK jobs and a dovish reading from the BoE minutes. After pulling back to 1.6350 the pair gained more than 250 pips and the pound now finds resistance at 1.6590. a break of 1.6590 is bullish.

USD/JPY
The USD/JPY broke below the symmetrical triangle we identified yesterday but the move lower was unable to push below key support at 76.40. Traders will be continuing to look to sell any push higher toward 77.00.

SILVER
Silver continues to struggle with resistance around 40.00/40 and traders will be waiting for a clear break above 40.40 for new longs. While the push higher will continue to face strong resistance , the bias remains to the upside.

USD/CHF
The USD/CHF remains in the trading range and traders used the move to 80.00 for new short positions. The trend remains bearish and a break below 78.00 will see further selling pressure.

GBP/JPY
The GBP/JPY rolled over from resistance at 127.00 and this sets up a move to 125.00. Traders will be working any move higher to 127.00 as an opportunity to take new shorts.

AUD/JPY
The Aussie-yen looks bullish after it broke above 81.00. Traders will be looking for a pullback to 80.40 for new longs, while a break above 81.10 will also be seen as bullish.

OIL
Oil produced a false break above 88.00 overnight and this sets up a short-term move lower. That said, the market is likely to remain bullish, and any move back to 86.00 will be seen as a buying opportunity.

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