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:

  1. Risk instruments continue push higher after Fed FOMC minutes suggest potential for new stimulus
  2. USD weakens on hopes of further stimulus, gold surges back to resistance at 1840
  3. Aussie pushes above 1.0700 before retreating
  4. EUR, GBP both weaken overnight as traders reduce bets on further rate rises
  5. Commodities generally higher overnight, with gold, silver and oil all stronger
  6. All eyes tonight will be on the US’s ADP non-farm payrolls at 10.15pm

AUD/USD
The AUD/USD pulled back to 1.0620 before pushing higher overnight, with the Aussie helped by an interview with Chicago Fed president Charles Evans, who presented a more bearish picture of the US economy and suggested further stimulus was required. Traders will continue to focus on the upside will a pullback to 1.0635 seen as buyable.

XAU/USD
Gold pushed up to resistance at 1840 overnight and that’s where the move higher terminated. Traders will need to see a break above 1840 before looking to take new longs. More aggressive traders might be looking to take shorts from 1840 in order to play the new trading range.

EUR/USD
The Euro pulled back overnight with the market now believing further rate rises from the ECB are now unlikely. This overnight move has brought the EUR/USD back to the uptrend support line around 1.4380 and traders are likely to be looking for long positions from around that level

GBP/USD
The GBP/USD remains under bearish pressure in the near term and traders will be waiting for a break below 1.6200 to trigger new shorts. However, the picture remains mixed, and any bounce from 1.6200 could be seen as a buying opportunity.

USD/JPY
The USD/JPY continues to provide selling opportunities on any move back to 77.00/20 and traders are likely to follow this strategy in the near term. Traders for shorts will be back to 76.50.

SILVER
As per yesterday’s report, silver remains in the trading range and the market will be looking to work the range in the near term. A move back to 40.10 can be seen as buyable, but a clear break below 40.00 will be seen as bearish.

USD/CHF
The dollar-Swiss is forming a bullish pattern under 82.00/25 and the market is now waiting for the break higher to take new longs. A pullback to 81.50 will also be seen as buyable.

GBP/JPY
The GBP/JPY has now clearly rolled over just below 127.00 and we’ve seen the pair drop around 200 pips in just over 24 hours. Traders will now be looking at 124.50 for a clear break lower and this could lead to further selling with targets back to 123.50.

AUD/JPY
The AUD/JPY has paused up at resistance at 82.20 and traders will be waiting for a break higher to continue with new long positions. Ay pullback to 81.20 will be seen as buyable.

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OIL
Oil pulled back to the top of the trading triangle pattern overnight before pushing higher almost $3.00 per barrel. From here, trader could wait for another natural pullback to 87.50/88.00 in order to take new longs.

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