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:

  • Heavy selling seen in early trade overnight before news of an agreement on Greece produces reversal
  • Late buying seen in euro, pound, as they gain around 100 pips on Greek news
  • Aussie tries to break below 1.0480 but bounces strongly from lows
  • Crude oil and gold both plunge as key countries release oil reserves
  • Dow finishes 60 points lower after being down as much as 200 points, produces bullish reversal signal
  • Today, we have central bank talks from AUD at 1.30pm, UK at 7.30pm, and US data at 10.30pm

AUD/USD
Like many other instruments, the Aussie is at a crossroads this morning, with the bearish picture clouded by last night’s sharp reversal. The rejection of lows below 1.0480 could be seen as bullish, but the overall trend remains lower, and traders will be looking to take new shorts up around 1.0600.

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XAU/USD
The tone for gold has clearly shifted to bearish after the US Fed’s interest rate decision 36 hours ago. Today, we could see a short-term retracement higher, with a move higher from support at 1510 most likely. However, traders will be focusing on the short side, with any break below 1510 signalling a continuation of down move.
EUR/USD
The Euro produced a small bounce overnight after the IMF and EU were reported to finalised terms for the Greek bailout. The move higher has terminated close to 1.4300 and we could see the pair reverse lower from these levels. The market has identified support around 1.4100, with a break of 1.4080 seen as bearish.

GBP/USD
The GBPUSD saw sharp losses overnight with the pair dropping below the all important 1.6000 barrier. The pound then saw a recovery in line with other risk instruments, and this has brought the pair back up to resistance. Traders are likely to be looking for shorts from around 1.6025 with targets back to 1.5940.
USD/JPY
The USD/JPY now appears to be settled in a new trading range between 80.40 and 80.70. Traders will be looking for longs from 80.40 or on a break of 80.80.

SILVER
Silver has shifted back to bearish after dropped back below the 36.00 level. Silver fell in sympathy with gold on the reaction to the Fed’s move to wind back stimulus. From here, resistance is seen at 35.40 and 36, with downside targets to 34.50

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USD/CHF
The dollar-Swiss is back at support and there is an expectation the greenback will push higher from here. Initial targets are back to 85.50 and a move above that level will really see the bulls come out to play
GBP/JPY
The GBP/JPY remains under severe downward pressure as expectations of a UK rate rise are wound back. Overnight, the pair made new three-month lows. Traders continue to look for new opportunities to short, with initial resistance seen at 129.40.
AUD/JPY
The Aussie-yen continues to remain trapped in this large descending triangle with the bears still dominating this pair. All eyes are on support at 84.20 with a break of this level extremely bearish.

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OIL
Oil was sharply lower after night after a coordinated effort by major nations to release oil reserves. This resulted in oil falling more than $3 per barrel in a couple of hours and has now switched the focus to the downside. Traders will be looking for shorts around $93 with targets to 89.70.
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