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:

  • Strong jobs numbers (including positive revisions of previous months) give the USD strength even though the jobless rate rose for the first time in five months.
  • EUR/USD sold aggressively as Greece reveals they are falling further behind deficit targets and have asked for easier targets in the short term, while rumours spread they are preparing an exit strategy to leave the EU.
  • AUD stays inside a wide range as commodities recover, helping keep the AUD supported.
  • Commodities post modest gains to recover some of the week’s losses.
  • US equity markets rebound on the better than expected jobs data with the Dow gaining 0.43%, S&P500 up 0.38% and Nasdaq up 0.46%.

AUD/USD
AUD found support on the dip during Asia on Friday and it was only the better than expected jobs data which saw it back off from the highs. Traders still seem content to be long AUD and buying on the dip with 1.0650 now the important level being watched and a break through there could be bearish in the short term. 1.0550/1.0600 expected to provide further support.

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XAU/USD
Gold played the recovery game after the heavy sell-off last week. The bounce found resistance at the all important 1500 level and although traders are currently bullish, they will be wanting a break and consolidation of this level before they get too excited and wary that a failure and break of 1480 on the downside could generate a significantly bearish signal.

EUR/USD
EUR/USD sits at the crossroads after two days of aggressive selling sees traders now asking the question of whether this move is a short-term correction or the beginning of a longer term reversal. Greece is not helping the cause and rumours of an exit plan has kept selling pressure on the EUR for the time being. 1.4200 is very important and a break of there could be bearish.

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GBP/USD
GBP again held up quite well in the light of the EUR getting sold so much on Friday and this puts further credence behind the importance of the 1.6300/1.6400 long term support region. This being said short-term traders are still happy trading it from the short side unless it convincingly breaks back up through 1.6450 looking for it to break through 1.6350 on route to 1.6300

USD/JPY
USD/JPY was bought on the stronger than expected jobs numbers but traders are still keen to be seller on any rally and between 81.00-30 is expected to provide strong resistance for the sellers to again get short on the rally targeting 79.50. Only a convincing break through 81.50 could change the sentiment in the short term.

AUD/JPY
AUD/JPY consolidated on Friday as USD/JPY found support as did the AUD/USD. 87.00/50 is an important level of resistance and rejection from this level occurred on Friday. Traders are now watching this level again looking for further rejection and a break lower later in the week. A break up through 87.50 could change this sentiment

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OIL
Oil was extremely choppy on Friday as traders looked for direction after such a strong move lower in previous sessions. 96.00 support held initially and this is now the line in the sand with traders happy being long unless this level breaks and feeling as though a period of consolidation between 96.00 and 102.00 for the time being

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