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 Friday on a downbeat note as bearishness continues
  • USD furthers rise on flight-to-safety
  • USD/JPY trades at new lows; focus on BoJ intervention
  • AUD/USD rejects levels around 1.0450; starts new week lower
  • Gold surges to yet another new record high; currently trading near 1800
  • US sharemarkets see another negative night on Friday: Dow down 1.6%
  • US economic data, including durable goods and jobs, in focus this wee

AUD/USD
The Aussie has started the new week on a negative foot and now appears to be heading back to support at 1.0320. While the bias remains negative, traders will be watching for a bounce around 1.0320. A break below this level is likely to see further selling.

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XAU/USD
Gold continues higher and started the new week by pushing toward the all-time highs at 1880. Again, traders will continue to looks for breaks to new highs as signals to resume long positions. While this market looks overheated, it can keep going up for some time yet.

EUR/USD
The Euro continues to grind lower, but it’s certainly making hard work of it. The EUR/USD has seen difficult congested trade recently but the overall bias remains to the downside. Any move back toward 1.4450 is seen as an opportunity to take new shorts.

GBP/USD
The GBP/USD continues to benefit from the inflows of global bond managers as they look for AAA alternatives to the US. The pound has rallied close to 5% over the last two weeks and traders will remain focused on the upside. Traders will be looking for longs around 1.6450.

USD/JPY
The USD/JPY produced a false break to new all-time lows on Friday and we have since seen a natural move higher. Traders will continue to work shorts around 77.00/20 in line with the dominate downtrend. Traders will continue to watch for BoJ intervention.

SILVER
Silver finally made that break above 42.00 we had been waiting for and the break results in a swift move to 43.60 in record time. Silver can move to 44.25 in the near with the expectation of a small pause around this level.

USD/CHF
No real change on the USD/CHF as the pair remains in the trading range. Traders will still be looking for longs around 78.00 and shorts around 80.00. A clear break of 80.00 will change the market’s view to bullish.

GBP/JPY
There’s been no real change on the GBP/JPY in recent trading. The pound-yen sees resistance at 127.00 and traders will continue to use this level for new short positions. A break above 127.00 is bullish, however.

AUD/JPY
The Aussie-yen remains trapped under 80, and traders will continue to focus on the downside in the near term. That said, a break above 80 will be seen as bullish. Traders will continue to watch for BoJ intervention.

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OIL
Oil continued lower on Friday on ongoing fears for the health of the global economy. Technically, crude went up to resistance at 84.00 before being sent back lower. Traders will be looking to sell just below 84.00 in expectation of a move back to 80.00.

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