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 instruments end the overnight session lower as Bernanke disappoints
  • Bernanke provides little guidance; wait-and-see approach in force
  • Greenback improves on risk aversion; AUD/USD back below 1.0600
  • EUR sharply lower after Trichet gives little away at ECB press conference
  • Dow ends session down 1.0% but European markets see gains
  • Chinese CPI, due midday, and the G7 meeting today and Saturday, the major upcoming events

AUD/USD
The AUD/USD looks to be consolidating in the near term and traders will be looking to use support at 1.0580 and resistance at 1.0660 for intra-day trades. Overall, the market sentiment is neutral, with a slight bias to the upside.

XAU/USD
Gold looks to favour the upside in the near term but any gains will have a hard time pushing through the all-time highs at 1915. A pull back to 1840 can be seen as an opportunity for intra-day longs.

EUR/USD
The EUR/USD headed lower overnight after Jean-Claude Trichet stuck a slightly more dovish tone, although not as dovish as expected. After breaking below 1.3970 we saw a 100-pip drop and the 1.3970 level will be seen as intra-day resistance for the bears

GBP/USD
The GBP/USD pushed higher overnight giving traders the opportunity to sell at 1.6070/100 before seeing a move back to support at 1.5920. A break of 1.5910 will be seen as another selling opportunity.

USD/JPY
The USD/JPY looks as if it is trying to break above 77.70 and a move above that level could see traders push the pair higher. That said, until we see a move above 77.70, traders might look for shorts, but this pair looks like it wants to push higher, at least in the near term.

SILVER
Silver’s looking a little uncertain thanks to the precious metal’s inability to break above 44.00 in recent days. From here, traders will remain cautiously bullish, with a clear break above 44.00 likely to see further buying. Intra-day support is seen as 41.40.

USD/CHF
“Don’t fight the Fed” is what the wiser heads in the market always say, and the market looks to be taking the same approach to the SNB. The USD/CHF has seen gains since Tuesday’s intervention and traders are likely to continue to favour the upside.

GBP/JPY
The GBP/JPY pushed back towards resistance but didn’t get to our sell zone at 125.00 before reversing lower. From here, traders will remain focused on the downside.

AUD/JPY
The AUD/JPY is consolidating in a tight little range at the moment and traders will be waiting for a break above 82.40 before taking new longs. Short-term resistance is also seen at 82.85.

OIL
Oil’s now in the trading range with traders likely to be looking for longs down near 86.50 and considering shorts near 90.00. A break above 90.00 will be seen as a chance for new long positions. Remember we are now in hurricane season so the risk is to the upside.

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