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:

  • Sharemarkets continue to trade higher as French banks rebound
  • Euro also pushed higher, but capped below 1.3750
  • Pound edges lower as UK inflation remains steady
  • Aussie consolidates at lower levels, 1.0250 he major focus
  • Gold, oil see gains overnight, but moves capped at resistance
  • On the agenda today, Aussie consumer sentiment, UK Employment and US PPI

AUD/USD
The AUD/USD looks to be consolidating at these lower levels and traders are likely to be looking for the opportunity to get short. A move back to 1.3060 will be seen as a chance to get short while a break below 1.0250 will also be seen as sellable.

GOLD
The downtrend line continues to dominate this chart with resistance seen at 1840/50. The major level for traders will be the 1800 level as a break below this level will shift the tone to bearish

EUR/USD
The EUR/USD continues to hover around 1.3700 and traders will continue to focus on the downside. I the near term, traders will be looking for stops above 1.3750 in the expectation of a potential move to 1.3500.

GBP/USD
No real change on the GBP/USD with the focus continuing to remain on the downside. A move back towards 1.5900 provides good value for short positions while a break of 1.5760 also provide opportunities on the short side.

USD/JPY
The USD/JPY lost ground overnight and traders will be focused on playing the range in the near term. For now, support is seen at 79.80 while resistance is seen at 76.80.

SILVER
Like gold, silver remains in a neutral pattern for the time being, with a break below 40.00 shifting the focus to bearish. The developments in Europe are likely to be the major driver for the precious metals space in the near term.

USD/CHF
The USD/CHF has pulled back to support at 87.70 and this provides traders with their first opportunity since the SNB’s intervention last week. The market is likely to remain focused on the upside with a potential for a move back to 89.00.

GBP/JPY
The GBP/JPY continues to head lower and traders will be focused on new shorts. A break of 121.30 sets up the next leg lower with the potential to move back the all-time lows at 119.20.

AUD/JPY
The AUD/JPY looks to be forming a symmetrical triangle at these lower levels and this is traditionally seen as a continuation pattern. A break below this pattern, or a move back to 80.00, is likely to be seen as a selling opportunity.

OIL
Oil continues to be capped by the 90 level and any move back to 90 is likely to be seen as a selling opportunity. A break above that level, however, will change the view to bullish.

To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.