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:

  • Eurozone crisis continues as Greece gets world’s lowest rating from Standard & Poor’s
  • Risk appetite see small bounce as Dow pushed higher in early trading
  • Commodities trade sharply lower overnight
  • Risk currencies see overnight gains eroded as Asia opens
  • Dow Jones and S&P finish slightly higher, snapping losing streak, but give up early gains
  • Slew of Chinese figures due out at 12.00pm, including all-important CPI

AUD/USD
AUD traded higher overnight to retest 1.0630/40 resistance area on back of short cross covering. Only above 1.0670 will this bullish trend continue into Tuesday while traders keenly await the slew of Chinese figures due out later for next directional push.


XAU/USD
Gold traded lower overnight falling below 1532.00 support level as investors grew nervous on global economic growth expectations. While volatility is normal these fears should provide upside support to the yellow metal with traders looking to buy dips into 1515.00/1520.00 levels for next move higher.

EUR/USD
The EUR staged a slight recovery in Monday’s trade thanks to an improvement in risk appetite. However, the pair is still clearly dominated by the bears, and the early move higher to 1.4430 was used as an opportunity to take new shorts. From here, a move back to 1.4320 seems likely, and a break of that level could see further selling.

GBP/USD
The GBPUSD continues to consolidate in a broad flag pattern, with the pair currently pushing into resistance at 1.6400/20. From here, traders expect the pair will trade back toward 1.6200, although a break of 1.6400/20 will be bullish.
USD/JPY
The USDJPY is currently quite delicately poised at support at 80.10 with the most recent push higher in this pair making the bears a little nervous that the USD could be about to stage a rally. Until 80.70 is breached traders will be focusing on the downside, with a break of 80.10 very bearish.
AUD/JPY
The AUDJPY continues to find good support at 84.30 and traders will be buying lower levels until this level cracks. This pair is highly sensitive to global economic expectations, so a poor result from Chinese CPI could see the key 84.30 finally crack and has the potential to produce a sharp move lower.


OIL

Crude fell sharply over the last couple of sessions as concerns about global growth continue to worry traders. Crude had fallen all the way back to 96.40 and this now becomes support. Traders will be looking to take shorts back on a retracement to 98.00 or on a break of 96.40.

To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.

Get Free Forex Training Materials from our Forex Education section.