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:

  • USD mixed as debt negotiations drag on, eyes on Congress vote this morning
  • AUD eases lower overnight and breaks below support at 1.1000
  • EUR continues to weaken, but GBP finds safe haven appeal
  • Gold, oil both drift lower
  • US share markets continue lower, with Dow down 0.5%
  • Big night for US data, including first second quarter GDP reading, but debt negotiations still key

AUD/USD
The Aussie has pulled back and broken below support overnight, but was only able to fall back to 1.0970 before finding buying buyers. While the next 24 hours are likely to be highly volatile as news out of the US drives price action, the Aussie remains in a bullish phase while above 1.0800.

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XAU/USD
Gold continues to underwhelm with little action seen from the precious metals apart from the jolt higher on the weekly open. A break below support last night saw the buyers step in and gold is now back in the trading range. We’d remain bullish while above 1610, but any good news from the States is likely to see gold sold heavily.

EUR/USD
The Euro’s break below 1.4325 yesterday never really saw much follow through selling and the pair found support at previous resistance at 1.4280. Traders could see the bounce from 1.4280 as a signal for new longs and with eventual targets to 1.4530.

GBP/USD
The pound found support at 1.6300 before lifting higher from that level and this is likely to be seen by the market as a bullish sign. There’s been increasing charter that markets view UK bonds as an alternative safe haven in light of the US’s woes. The fact the pound has held above 1.6260/300 sets up a move to 1.6440 in the near term.

USD/JPY
Despite the heavy selling pressure on the pair, the dollar-yen hasn’t been able to break 77.60 for the last 48 hours. The market is clearly cautious on the back of the increasingly rhetoric from the BoJ, which may intervene to stop the yen’s appreciation. That said, a break of 77.60 should see further selling, while any move to 78.00/20 should also see new selling

SILVER
Silver has pulled back to the upper side of the symmetrical triangle and this now sets up a new opportunity for bulls. Traders typically view such a re-test of resistance as a chance to take new longs. Initial targets would be back to 41.00.

USD/CHF
The GBP/JPY has formed a short term sell signal that suggests a move back to move back to 126.75 is on the cards. All eyes will remains on 126.75 as a break below this level will be seen as bearish.
GBP/JPY

The AUD/JPY has rejected higher levels at 86.00 and now looks as if it is heading back to re-test support at 85.20. Traders are likely to be looking for new longs around that level.
AUD/JPY

The AUD/JPY has rejected higher levels at 86.00 and now looks as if it is heading back to re-test support at 85.20. Traders are likely to be looking for new longs around that level.

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OIL
Crude has become a market for short-term traders with no clear direction in this rangebound market. On the top side, sellers will be looking to take advantage of any move to 97.00, while sellers will be looking for opportunity around 96.00 and then 95.50.
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