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:

  • Risk rally continues overnight as USD plunges; FOMC minutes suggest QE3 still on the table
  • AUD/USD surges after braking parity; trades as high as 1.0200
  • Euro also sharply higher on USD weakness; Slovak vote expected this week.
  • Commodities also improve, but gold unable to hold above 1680
  • US sees early gains but eases near close; Dow higher for fifth day out of seven
  • Aussie employment numbers today’s major event; US jobs numbers due 11.30pm

AUD/USD
We saw a remarkable move in the Aussie overnight with the little battler surging more than 300 pips from the lows. The move was a result of USD weakness and has now brought the AUD/USD up to major resistance at 1.0200. We’d expect a little pullback from this level but the recent price action suggest the bulls are now in charge.

GOLD
Gold produced yet another false break above 1680 and this continues to be bearish for gold. Traders will be focused on the short side while we trade below 1680.

EUR/USD
The Euro’s move above 1.3700 was clearly a bullish sign and traders will now be focused on the long side. A pull back to 1.3700 is likely to be seen as a buying opportunity.

GBP/USD
The pound surged higher overnight despite extremely poor unemployment numbers. Traders will now be looking for a move back to 1.5700 with any signs of a bounce likely to be seen as a buying opportunity.

USD/JPY
The dollar-yen has surged up to the top of the range and traders will now be looking to sell this move in expectation of a move back to support around 76.50. For now, this market is likely to remain within the major range.

SILVER
Silver continues to be well supported as it trades within a clear ascending triangle formation. Any pullback to support at 31.90 could be seen as a buying opportunity.
USD/CHF
The dollar-Swiss broke lower yesterday in line with this bout of USD weakness but the market will remain on the side of the bulls while we remain above 0.8920.

GBP/JPY
As we noted yesterday, the break above 120.80 was the confirmation of the double-bottom, and this saw the sterling-yen surge more than 160 pips. From here, the market will be waiting for a move back to 120.80, with a bounce from this level likely to be seen as a buying signal.

AUD/JPY
The AUD/JPY surged above 76.80 overnight and this saw the pair move all the way up to 79.00. This was clearly a bullish sign but traders will be waiting for a natural pullback before considering new longs.

OIL
Oil’s still unable to break above 86.00 and traders will use this level for new shorts. Tonight’s oil inventories could be the trigger for a move higher considering the recent bullishness of other major markets.

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