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 reverses after German official warns of no quick fix for Greece
  • Aussie sharply lower as it drops more than 200 pips; Euro also lower
  • USD sees gains in flight to safety; US bond yields sharply lower
  • Commodities also lower on risk aversion, gold unable to push above 1700
  • Wall Street ends down 247 points or 2.1% after its best weekly performance since July 2009
  • RBA minutes at 11.30am and Chinese data at 1.00pm today’s major announcements

AUD/USD
Last night’s selldown has left the Aussie in a precarious position as this could be the recommencement of the major downtrend that has dominated trading since early August. For now, the next major level will be 1.0100, and a break below that level will be bearish.

GOLD
Gold remains unable to break out of this bearish wedge and traders will remain focused on the downside, with any move up to 1695 a selling opportunity. A break below 1670 will complete the wedge and this could encourage further selling.

EUR/USD
The Euro rejected the 1.3900 level after German spoilsports warned that there was no quick solution to the Greek debt crisis. Like the Aussie, this could be the resumption of the downtrend, but we’ll need to see a break below 1.3700 before this is confirmed.

GBP/USD
The pound was unable to push above 1.5850 and it now looks like we are heading back to 1.5700. Any signs of a bounce around that level could see traders recommitting to longs. Don’t forget we have UK CPI at 7.30pm tonight.

USD/JPY
The dollar-yen has come back to 76.70 and traders will be looking for a bounce from this level. Traders will now be looking for a move back to 77.20/40.

SILVER
No change on silver with the precious metal still stuck in the triangular consolidation pattern. With gold looking more bearish we could be about to see silver roll over as well.

USD/CHF
The dollar-Swiss has held above support at 0.8900/20 and traders will remain on the long side for the moment. Any further weakness across markets is likely to result in further gains for the USD/CHF.

GBP/JPY
The GBP/JPY has seen a short-term pullback but the market will be watching the major 120.50 level very carefully. Any sign of bullishness above 120.50 is likely to be bought up by the market after powerful reversal seen in late Sept/early Oct.

AUD/JPY
The AUD/JPY has rejected 80.00 and has now come back to 78.00 where the market will be looking for signs of a bounce. This is quite a crucial level for the AUD/JPY as a break of 78.00 sets up a move back to 76.80.

OIL
Oil’s found some support around 86.00 and the market will remain on the side of the bulls until we see a clear break below 86.00. Intra-day longs from 86.00 would be looking to target 88.00.

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