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:

  • Commodities get smashed as the Chicago Mercantile Exchange halts trading on Gas & Oil for 5 minutes due to rapid downward moves after data release shows massive oversupply.
  • EUR sold on debt concerns and rumors a rescue package for Greece will be delayed.
  • Bank of England lifts inflation outlook seeing GBP surge initially.
  • AUD breaks lower as commodities strongly reverse.
  • Australian jobs numbers at 11.30 could provide plenty of volatility
  • US equity markets closed lower on growth concerns with the Dow gaining 1.02%, S&P500 up 1.11% and Nasdaq up 0.93%.

AUD/USD
AUD continued to push higher early until it ran into resistance towards 1.0900. Helped along by a major commodity sell-off it was quickly down through support and 200 points lower. From here traders are keeping a keen eye on commodities and sentiment is sell any rally back towards 1.0800 looking for a re-test of the lows around 1.0550/1.0600 in the coming days

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XAU/USD
As mentioned in yesterday’s report traders were wary of a downside break and a massive selloff in commodities across the board saw it straight down to 1500.00 support. Traders are extremely wary that this could be the beginning of a major commodity sell-off and now looking to sell any rally with 1520.00 now providing resistance

EUR/USD
EUR initially tried higher but 1.4420 resistance held strong and as rumours surrounding the possible delay of a rescue package to Greece surfaced it was aggressively sold lower. There is a lot of mixed feelings with traders at the moment the bulls happy buying the dip respecting the 1.4150 support and the bears happy to sell rallies back toward 1.4250 initially.

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GBP/USD
GBP broke higher on the BoE announcement that inflation in the UK could reach 5% in the near term and traders took this as an extremely bullish signal. This announcement put together with a break of critical resistance saw GBP up to the highs where the reversal occurred as the negative news out of the Eurozone caused the GBP to get caught in the crossfire and sold heavily

USD/JPY
USD/JPY continues to grind higher and the longer we stay above 80.50 the more chance we have to break higher in the coming days and this sustained rally has traders sensing a change in the sentiment and a cautious bullish tone is now emerging so long as the rally can be sustained. A break down through 80.50 could bring the bearish tone back again.

AUD/JPY
AUD/JPY had a massive correction last night as the AUD/USD felt the effects of the strong commodity sell-off and on the break of support AUD/JPY was quickly lower. Today’s jobs numbers and what happens next in commodity prices is what most traders are keeping an eye on with selling the rally being the initial feeling unless the jobs numbers are high.

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OIL
Oil got smashed as data showed a major oversupply and the CME closed trading in oil and gas due to the big downward move. This only fuelled speculation of further declines and on the re-open of trading it continued lower. Traders still happy being short on any rally for the time being looking to break 96.00

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