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 appetite remains in place as equities surge but gold tanks
  • Gold sees largest fall since early 2008 as traders reduce safety trade
  • FX market virtually unmoved overnight, USD sees small gains
  • GBP the weakest overnight as UK bonds yields rise
  • Dow ends 144 points higher as traders flock back to risk appetites
  • We’ve got a massive night tonight: German consumer confidence, US jobs and Jackson Hole kicks-off

AUD/USD
The Aussie’s in a tight spot at the moment with no clear direction as it continues to consolidate between 1.0440 on the downside and 1.0540 on the upside. With the moving averages distinctly flat, the market will be waiting for a break out of the range before taking new positions.

XAU/USD

Gold was taken back to the 21-day EMA overnight in a natural move after the strong move higher we have seen over the last month or so. The 21-day EMA, at 1760, will be crucial in determining whether gold can resume its move higher. Traders will be waiting for the market to calm down and consolidate before taking new longs.

EUR/USD
The Euro pulled back towards 1.4350 overnight and traders will now be looking for longs around that level. A move from 1.4350 would look to have targets back to 1.4500.

GBP/USD
The GBP/USD fell back to the 21-day EMA overnight and traders will be looking for a bounce around 1.6320/60. The pound has recently been under pressure as US debt fears have become more becalmed. A break of 1.6300 will be seen as bearish.

USD/JPY
The USD/JPY has pushed back up towards resistance at 77.00/20 and traders will be looking for new shorts around that level. A clear break above 77.20 is likely to see a sudden move to higher prices, but the market is likely to remains focused on the short side.

SILVER
Silver has been sent lower in line with gold as money rushed out of the precious metals space. That said, the picture remains bearish, but traders will be waiting for a period of consolidation and an entry signal before taking new longs.

USD/CHF
The USD/CHF remains trapped in consolidation and traders will be waiting for a break in either direction. Importantly, we have recently seen some signs of US strength, and with a large number of stops above 80.00, this might be seen as the path of least resistance.

GBP/JPY
The GBP/JPY provided another opportunity to sell at 127.00 over the last 24 hours before falling back to support at 125.50. From here, we could see a small bounce, but traders will be looking for new shorts around 127.00.

AUD/JPY
The AUD/JPY is starting to look more bullish but traders will be waiting for a move above 81.20 before initiating new longs. Any pullback to 79.00 can also be seen as buyable.

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OIL
Very little change in the crude market overnight with trade still dominated by resistance at 86.70 and support at 83.50. Oil has been an interesting market because while US shares have rallied on poor economic news, oil has been struggling. Any break in any direction is likely to be seen as tradable.

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