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 stage comeback as risk appetite improves; strong results from BOA helps sentiment
  • Aussie bounces well from 1.0100
  • Euro has volatile night but closes the session higher
  • Commodities also improve with gold reversing after early sell-off
  • Wall Street pushed strongly higher but closes off its lows
  • BoE minutes and US CPI the day’s major events

AUD/USD
The Aussie bounced well from 1.0100 overnight and this is clearly a sign of strength. A break of 1.0375 is likely to be the next trigger for longs.

GOLD
Gold broke below the bearish wedge pattern overnight and this saw a sharp acceleration of selling all the way back to 1627. However, the improvement in risk appetite has seen gold bounce back to the underside of the bearish wedge. From here, traders will be looking for new shorts and maintain a bearish bias unit we move above 1700

EUR/USD
The Euro broke below 1.3700 overnight but it couldn’t continue lower signalling that this pair remains well supported by the market. Traders will now be looking for a move toward 1.3900 with a break above that level likely to trigger further buying.

GBP/USD
Like the Euro, the pound broke below major support (at 1.5700 on the GBP/USD) but quickly staged a bounce, providing a potential new higher low that would be seen as a bullish sign. A break above 1.5850 provides major confirmation of the uptrend and will be seen as a buying opportunity

USD/JPY
The dollar-yen is holding at support at 76.70 and traders will continue to look for a bounce from this level. The upside target for traders will now be looking for a move back to 77.20/40.

SILVER
Like gold, silver broke below the major consolidation pattern overnight, but just as gold has, silver has reversed and marched back up to the bottom of the consolidation pattern. While we trade below 32.30 traders will be looking for shorts.

USD/CHF
The dollar-Swiss broke below support for a short period overnight but the bounce higher means that traders will continue to favour the short side. Upside targets remain to 0.9130.

GBP/JPY
The GBP/JPY now looks like there is a greater probability that it has resumed its downtrend. A clear break below 120.00 will change the market’s view back to bearish. However, a clear bounce from 120.00 could see some buying interest.

AUD/JPY
The AUD/JPY now looks to be in a range and traders will be looking to play the range until we see a break in either direction. With the pair currently in the middle of the range, traders will be waiting for a move to the edge of the range before taking new positions

OIL
Oil bounced well from support at 86.00 overnight and this presents a more bullish picture. A break of 88.00 is likely to trigger further buying.

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