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 lower as European debt worries intensifies; US markets closed
  • European currencies sharply lower, EUR/USD and GBP/USD both break support
  • AUD/USD breaks below 1.0600 as risk instruments sent lower
  • Gold only winner as commodity markets tank; oil below US$84 per barrel
  • European markets sharply lower: FTSE down 3.6%, DAX down more than 5%
  • All eyes on today’s RBA rate decision at 2.30pm – no change expected

AUD/USD
The AUD/USD has now broken below 1.0600 and this changes the market’s view to bearish. With the collapse in confidence in Europe overnight, we can expect the bearish sentiment to continue. Today’s RBA decision will be crucial.

XAU/USD
Gold continued to push higher with the market focused on European debt fears. From here, the main focus is on the all-time highs at 1912 with a break of this level likely to be used as an opportunity for new longs.

EUR/USD
The EUR/USD pushed up to Monday’s opening gap at 1.4175 before heading lower and this level will be critical as we move forward. The picture looks bearish for the EUR/USD, but the trade is likely to be congested until we see a clear break of 1.4000.

GBP/USD
The break of 1.6135 has now changed the market’s view to bearish and traders will be looking for opportunities to take new short positions. Any retracement back to 1.6135 will be seen as a chance for new shorts, while any break below 1.6065 is also sellable.

USD/JPY
There’s no change on the USD/JPY as the pair continues to provide selling opportunities on any move back to 77.00/20. The targets for shorts will be back toward 76.50/30.

SILVER
Silver consolidated overnight with the market’s focus on support at 42.00 and resistance at 44.00. A pull back to 42.00 will be seen as a buying opportunity while traders will also be looking for a break above 44.00.

USD/CHF
The USD/CHF didn’t quite get to the sell zone overnight as it rolled over at 79.20 before heading lower. The market’s focus will remain on the downside, with short-term targets back to 77.00.

GBP/JPY
The GBP/JPY is currently trading near the major lows at 123.30 Traders will need to see a break of those lows before committing to new shorts; otherwise, a move back to the sell zone between 125.20 and 126.00 will also be seen as a chance to get short.

AUD/JPY
The AUD/JPY is currently just holding above support, but with the overall market sentiment bearish, a break might not be too far away. A break of 80.80 changes the market sentiment to bearish.

OIL
Crude has broken below 86.00 and this now clearly changes the view to bearish. In the short-term, a move back up to 84.80 is seen as selling opportunity, while a move below 83.00 will also be a trigger for new shorts.

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