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:

  • Market sentiment sharply reverses at US 10-year falls below 2.00%
  • USD rises on flight-to-safety; AUD drops almost 200 pips in 24 hours
  • Economic glooms persists as Philly Fed disappoints by most since 1998
  • Risk currencies loses ground, EUR, GBP and CAD all lower
  • Gold surges to new record high; approached 1830
  • US sharemarkets collapse on Philly Fed: Dow down 3.7%, Nasdaq down 5.2%
  • After last night’s action, tonight has less excitement: CAD CPI and US Fed Dudley speaks

AUD/USD
The sharp selldown overnight has switched the bias to bearish on the AUD/USD and traders will now be looking to participate on the downside. While key resistance is seen at 1.0600, traders will view any move to 1.0450 as a new selling opportunity.

[Sign up here to get this report daily]

XAU/USD
Gold surged higher overnight, breaking to new all-time highs, as investors surged into safety following the US ten-year bond’s drop below 2.00%. The break of 1815 led to a sharp move to 1830. Traders will be either waiting for a pullback to 1815 or looking for a new break higher for new longs.

EUR/USD
The Euro’s sharp move lower has turned the picture more bearish and traders will be looking for short-term strength to take new shorts. A move back to 1.4360 has the potential for new shorts, while minor resistances is also seen at 1.4400 and 1.4450.

GBP/USD
The GBP/USD reversed lower overnight but the falls were halted around the 1.475 level. The GBP has been helped recently as larger fixed income investors look for alternatives to the US dollar. This means the market’s view on cable will remain bullish with longs around 1.6475 looking for a move to 1.6590.

USD/JPY
The USD/JPY remains trapped at lower levels but we have seen very little prices action on this pair. There were rumours of BoJ intervention yesterday but no action was taken. Traders will continue to focus on the downside, although they will also remain mindful that any intervention is likely to see a huge move higher.

SILVER
Silver has continued to inch higher as it moves in sympathy with gold. A base now looks to have been formed above 40.00 and traders will be looking for new long sin expectation of a move to 42.00

USD/CHF
The USD/CHF remains in the trading range and traders will looking for longs around 78.00 and shorts around 80.00. A clear
break of 80.00 will change the market’s view to bullish.

GBP/JPY
The GBP/JPY continues to find resistance up at 127.00 and traders will continue to use this level for new short positions. Initial
targets to the downside are firstly 126.00 and then 125.00.

AUD/JPY
The Aussie-yen was unable to hold above 80.00 and this means traders will now be looking for trades on the short side. Any
move back to 80.00 will be seen as an opportunity to get short.

[Sign up here to get this report delivered to your inbox daily]

OIL
Oil was sent sharply lower overnight after the US’s Philly Fed index indicated that economic growth was slowing in the world’s largest economy. This is obviously bearish for crude and saw oil drop almost US$5 per barrel. Any move back to 84.00 is likely to be seen as an opportunity to get short.

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.