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 keeping an eye on a plethora of Chinese data to be released.
  • Greek bonds rallied as traders speculated that a debt restructure will not occur.
  • AUD stays supported as the market gives the thumbs up tot eh Federal budget.
  • Commodities continue to grind higher with Oil surging on Mississippi floods and gold providing the safety trade.
  • Deutsche calls for Gold to $2000 by end of year but Soros rumoured to be trimming long position recently.
  • US equity markets climb on strong corporate earnings with the Dow gaining 0.60%, S&P500 up 0.81% and Nasdaq up 1.01.

AUD/USD
AUD continues on it’s march back towards the previous highs and the break of 1.0800 provided more bullish signals. We have Chinese data out today strong results could give the impetus to break through 1.0900 although initial resistance is expected to be around at that level. Any dip back towards 1.0800 is also expected to see the buyers emerge

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XAU/USD
Gold continues to grind higher and it seems make or break from here. The uptrend prevails and traders are happy to stay long, but a downside break through 1510.00 is extremely bearish. 1523.00 is also an extremely critical level of resistance and may slow things down initially but most traders calling for 1530 in the coming sessions.

EUR/USD
EUR rallied as traders took a break from selling on sovereign debt concerns and with bond markets also feeling that a debt restructure is not immanent. As we open in Asia today we are towards resistance of 1.4400/10 and unless we can get through 1.4430 traders are content to be short but a break of 1.4450 could be significantly bullish.

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GBP/USD
GBP continues to track in the downward trend channel and traders had a good day selling the rally yesterday and seem keen to do the same again today. 1.6400 is really the critical level on the topside now and a break through there could be considered quite bullish, but unless that occurs traders are targeting 1.6300 initially.

USD/JPY
USD/JPY managed to rally up towards resistance around 81.00/10 and has initially reversed with traders being quite content to sell around these levels with a stop above 81.30/40. Today will be an interesting session as when strong trend-lines are tested it provide opportunities to get short at great levels or buy the break. Time will tell.

AUD/JPY
AUD/JPY broke through the 87.00 resistance point savagely and it was quickly up to the highs. From here traders are now expecting the previous resistance to create support and looking to buy any dip back towards 87.00 looking for it to eventually test the recent highs of 89.00.

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OIL
Oil marched higher as commodities recovered well and floods in Mississippi put supply concerns on trader’s minds. We are however approaching the critical 106.00 resistance level and traders seem keen to start initiating shorts around these levels with stops above 107.00 as the recent move has all the hallmarks of a bearish wedge formation.

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