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:

  • Markets close last week on a down note after US jobs disappoint (18k growth against 97k expectation)
  • Euro trades back to 1.4200 as risk appetite wanes
  • Aussie moves back to support at 1.0700
  • Gold surges, but crude tumbles on jobs numbers
  • Dow finishes best two-week performance in two years with a small loss
  • Quieter week of data, with BoJ decision on Tues, key Chinese data on Wed, and FOMC minutes on Thurs

AUD/USD
The Aussie clearly failed at the 1.0780 highs on Friday, weighed down by an increase in risk aversion following the US’s poor jobs numbers on Friday. This has seen some follow through in today’s Asian session and the AUD/USD now looks as if it is heading toward support at 1.0660. Traders will be looking to take new longs while support at 1.0660 holds.

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XAU/USD
Gold benefited from the weaker US jobs numbers as the market speculated that the US government would need to provide further monetary stimulus. Gold smashed through resistance at 1535 and the next major chart areas is further resistance at 1555/60. Any pullback to 1535 is likely to be seen as a buying opportunity by the market.
EUR/USD
The Euro has been sent sharply lower over the last few trading sessions and now appears to be approaching the bottom end of the large symmetrical triangle formation. If this level doesn’t hold, then a break below this level will be seen as very bearish, and sets up a move to 1.4100 and then 1.4000.

GBP/USD
As per the last few days, there’s been no real change on the GBP/USD, with prices still trapped in the ongoing trading range. On Friday, cable moved up to resistance near 1.6100 and we have since seen prices head back lower. The market now expects prices to head back toward 1.5920, with an eventual break lower seen as more likely than not.
USD/JPY
The USD/JPY continues to trade higher in an extremely volatile trading band. On Friday, with disappointing jobs numbers pushed USD/JPY back to support and this could see traders build new long positions from around 80.40/60.

SILVER
Silver saw some small gains on Friday as it pushed higher in line with gold. For now, support remains just below 36.00, while resistance is seen as 36.80. A break of 36.80 will be seen as bullish.

USD/CHF
The USD/CHF was sent sharply lower from just below resistance at 85.50 and is now approaching the lower end of the range at 83.30. Traders could be looking to buy USD/CHF at support around 83.30 in the expectation of a move back toward resistance.
GBP/JPY
The GBP/JPY continues to suffer from selling pressure and traders will be waiting for a move back to resistance at 130.00/50 to take new shorts. Support is now seen at 128.30.
AUD/JPY
The Aussie dollar has been sent lower since Friday’s poor US jobs numbers. The AUD/JPY has pulled back to support near 87.00 and traders could see this as an opportunity to take new long positions. To the upside, resistance is seen at 88.10.

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OIL
Crude was sent sharply lower on Friday after the poor US jobs numbers. The move lower has brought oil to a crucial level. Whole crude trades above 95.90 the market is likely to remain bullish, but a move below that level could change the market’s view to bearish.
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