Forex Market Insight 09/02/2011
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 move to ‘risk off’ mode ahead of tonight’s jobs numbers
- Aussie breaks above 1.0720 before late selling hits pair
- Euro, pound continue their decline as rate rise bets reversed
- USD/CHF breaks below 80.00 after poor Swiss GDP numbers
- Gold, crude steady ahead of tonight’s non-farm payrolls
- Tonight. all eyes are on the non-farm payrolls, with a market expectation of 74k new jobs
AUD/USD
The AUD/USD has broken above resistance at 1.0720 and this should set up further gains in the pair. The pullback to 1.0720 is likely to be seen as a buying opportunity, with initial targets to 1.0765. As noted previously, there is plenty of resistance between here and 1.0800
XAU/USD
Gold is clearly consolidating in an extremely tight range as traders wait for tonight’s non-farm payrolls. A poor jobs number could result in a break higher in gold. In the meantime, traders will be using 1812 as minor support and 1840 as major resistance.
EUR/USD
The Euro has broken lower and this shifts our view to a more bearish tone. From here, a break of 1.4230 should set up further losses. That said, the Euro remains in a multi-month consolidation between 1.4000 and 1.4600.
GBP/USD
Overnight, the GBP/USD broke below support 1.6200 and this produced a short-term move to 1.6135. Much like the Euro, the GBP/USD is now trading near the bottom of a multi-month consolidation pattern and this means that any further losses could be capped. A break of 1.6100 could set up a move to 1.6000.
USD/JPY
As we’ve discussed for close to a month now, the USD/JPY continues to provide selling opportunities on any move back to 77.00/20. Targets for short positions will be back to 76.50.
SILVER
After three weeks of solid gains, the USD/CHF looks to have resumed its downtrend after two days of losses. A move back to 80.00 will be seen as a new selling opportunity.
USD/CHF
The GBP/JPY moved back toward the sell zone yesterday giving traders the opportunity to take new shorts before we saw a 120-pip decline. From here, a break below 124.10 sets up a move to the all-time lows at 123.30.
GBP/JPY
The GBP/JPY moved back toward the sell zone yesterday giving traders the opportunity to take new shorts before we saw a 120-pip decline. From here, a break below 124.10 sets up a move to the all-time lows at 123.30.
AUD/JPY
The AUD/JPY broke above 82.20 yesterday, giving traders the chance to get long. The move occurred on the back of yesterday’s strong Australian retail sales data. Traders will use any move back to 82.20 to take new longs, while a break of 82.85 is also buyable.
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OIL
Like gold, crude has been consolidating over the last 24 hours as we lead into tonight’s non-farm payrolls. A break above 90.00 will be seen as another buying opportunity.
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