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:

  • Choppy night as markets eye Slovak vote on EFSF after overnight rejection
  • Euro bounces well from lows despite Slovakia; pushes back to 1.3700 resistance
  • AUD/USD trades in one-cent band with 1.0000 still major resistance
  • Commodities flat overnight with gold, silver and oil backing away from resistance
  • US equity markets flat overnight, but Nasdaq marches higher; Alcoa reports poorly after the close
  • Aussie home loans at 11.30am will move the market; as will Fed minutes at 5.00am tomorrow

AUD/USD
The Aussie’s been unable to break above 1.0000 over the last 24 hours and this level now presents itself as clear resistance. We’ve seen the market bounce from 0.9905 so traders will be using a pullback to support around this level for new longs. A break of 0.9880 is bearish.

GOLD
Gold’s false break above 1680 is bearish for the precious metal and traders will be focused on the short side until we see move back above that level. That said, the price action is producing a bullish triangle under resistance and a break of 1680 will quickly shift sentiment into the bullish camp.

EUR/USD
The Euro fell back from resistance at 1.37000 yesterday but it didn’t get back to our expected support at 1.3530, instead bouncing from higher levels at 1.3565. This can be seen as bullish but we’ll need a break above 1.3700 before the market completely commits to longs.
GBP/USD
The pound has been under selling pressure over the last 24 hours after its failure to break above 1.5700. Intra-day support is at 1.5550/70 and a break of this level will be seen as bearish with initial targets to 1.5500.

USD/JPY
As per yesterday’s report, the dollar-yen has been capped by the downtrend in recent times and traders will be keeping a close eye on support at 76.60. A break of this level could set up a short-term move to 76.20.

SILVER
Silver is still clearly in consolidation phase with major resistance seen at 32.85. Traders will need to see a break above that level for new longs, but a pullback toward 30.00 also offers trading opportunities.

USD/CHF
The dollar-Swiss is forming a lovely little step-up pattern with a series of higher highs and higher lows. Support now looks to have kicked in at 0.9000 and traders will be looking for a move targeting the recent highs at 0.9310.

GBP/JPY
Like so many other pairs, the sterling-yen is consolidating at the moment with major resistance seen at 120.85. A break above that level will complete a double-bottom reversal and will quickly shit market sentiment but, for the moment, traders will remain focused on the downside.

AUD/JPY
The AUD/JPY failed at 76.80 overnight and this pair now looks stuck in a range with 76.80 resistance at support seen between 75.80 and 76.00. A clear break above 76.80 shifts momentum back to the bulls.

OIL
The false break above 86.00 would be treated as a bearish sign and oil has eased lower over the last couple of hours. Traders are likely to remain short while we are under 86.00 with eventual targets to 84.00.

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