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:

  • Risk currencies get smashed lat on Friday as serious concerns linger on sovereign debt default with AUD/USD and EUR/USD sold extremely heavily and closing on the lows.
  • AUD/USD traders keen awaiting the release of RBA minutes tomorrow.
  • US CPI comes out in line with expectations showing stability in the recovery of the US economy.
  • Commodities fail to break through to recover gains after initially pushing higher and start the week under pressure.
  • In equity markets, European markets closed lower, with Dow also down 0.79%, S&P500 down 0.81%, and the
  • Nasdaq fared the worst of all down 1.21%

AUD/USD
AUD was caught in the cross-fire of risk currencies getting sold on EU debt concerns and we closed towards the lows. Traders still calling AUD lower in the coming sessions but wanting a clear break of 1.0500/20 support to confirm this view. RBA minutes tomorrow may dictate the overall move for the week, but with commodities struggling, downside is the risk.

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XAU/USD
Across the board commodities struggled and the sell-off continues on the open of the Asian session this morning. Since we have failed to get back above 1500 in late NYK trade, it seems that traders are still keen to sell on any rally and the level of expected resistance is now around the 1500 level looking for an eventual break below 1480 in the next 14 hours.

EUR/USD
Financial market dislike uncertainty like the plague and until such time as we have a definitive answer for the issues in Greece it seems that traders will continue to sell EUR at any opportunity. From here traders are looking for their levels and being patient as initially support comes in around 1.4050 and many think they will get better levels to sell.

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GBP/USD
The only thing keeping the GBP from freefall is the fact that EUR/GBP is getting sold so aggressively. Traders are still calling for a lower GBP overall but are cautious of getting too bearish and the bottom and are looking to sell the rally back towards 1.6250 initially.

USD/JPY
USD/JPY broke lower in late Asia on Friday and has since been trying to recover the losses but as yet has failed to get back through 81.00. Trader still seem keen to sell the rally and with JPY crosses (EUR/JPY in particular) struggling, short is the favoured side for the moment unless we clearly break back up through 81.10.

AUD/JPY
AUD/JPY broke lower on Friday and still looks to be struggling as risk currencies lose their favour. From here there is a small amount of support around the 84.90/00 region but most traders seem to feel this will only provide a small amount of support on route to 84.00 later this week.

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OIL
Oil struggled to maintain any gains late last week and again on Friday on the rally briefly above 100 the sellers emerged. Traders continue be calling for lower oil in the coming days as commodities had a very frail weekly close signalling that the next move may well be to the downside.

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