Forex Market Insight 09/16/2011
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:
- ECB move to inject liquidity into system sees risk assets surge overnight
- Dow completes fourth wining session as sentiment improves
- Euro surges higher on ECB move, but finds resistance below 1.4000
- Aussie also gains but sees resistance at 1.0350
- Gold smashed overnight; oil drifts below US$90
- Not much on the economic agenda today; could be a quiet session after last night’s big moves
AUD/USD
The last two days have seen the Aussie bounce strongly from the 1.0200 zone and this shifts the market sentiment to a more neutral tone. Bears will be looking to short around 1.0350 to 1.0370, but a clear above 1.0380 could be seen as a buying opportunity.
GOLD
Gold has now broken below the support zone at 1800 and traders will now be focused on the short side. A move back to 1800 can be seen as a selling opportunity while a break below 1775 will also be used to trigger new shorts.
EUR/USD
The EUR/USD surged higher overnight after the ECB injected liquidity into the market, bringing the EUR/USD up to resistance at 1.3970. For now, the market is likely to remain bearish while we are below 1.3970.
GBP/USD
The GBP/USD pushed up to the resistance zone overnight before quickly heading back lower and the market will remain bearish in the near term. The targets to the downside will be back toward 1.5700.
USD/JPY
The USD/JPY pushed up towards the sellzone at 77.50 overnight but rolled over just before reaching this level. From here, standard operating procedure continues, with traders looking for longs around 76.60 and shorts around 77.50.
SILVER
Silver has now broken below 40.00 and traders will now be focused on the short side. The next level of support will be 39.00 and a break of that level could see a continuation of selling.
USD/CHF
The dollar-Swiss has lost momentum over the last couple of days and that shifts the tone of this market to bearish. In the near term, a move back to 0.8800 could be seen as sellable with near term targets to 0.8600.
GBP/JPY
The GBP/JPY pushed higher overnight before reversing sharply lower, continuing to signal just how bearish this pair is. Traders will continue to look for new shorting opportunities with a break of 120.70 looking like the next trigger.
AUD/JPY
The AUD/JPY moved up into the sell zone yesterday but only reversed around 60 pips from this level. From here, we’d take a more neutral stance, with a break above 79.50 having the potential for a swift move back to 80.00.
OIL
No real change on the crude oil contract with moves up to 90 continuing to be sold by the market. Of course, this won’t last forever, and the price action is suggestive of a forthcoming break higher. Until we see a break of 90, however, traders will remain focused on the downside.
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