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:

  • Global markets shudder lower as fear grips investors
  • US bond yields collapse in massive flight to safety
  • AUD/USD falls to year lows as risk instruments collapse
  • EUR, GBP tumble as USD, JPY surge
  • Gold, oil sharply lower as commodity markets collapse
  • IMF, G20 meetings now in focus with potential for big weekend gaps on coordinated action

AUD/USD
The Aussie was forced sharply lower on the back of massive risk aversion and this brought the pair back to support at 0.9700. The market looks to have formed a base around this level and traders will be hoping for a short-term move into 0.9870/930 for a chance at new shorts.

GOLD
Gold moved sharply lower after breaking below the 1760 level overnight and we have since seen a move back to 1720. Traders will be looking for a bounce into 1760 in order to take new shorts.

EUR/USD
The Euro was also sent lower in this wave of risk aversion, breaking below the all-important 1.3500 level. This level had been major support and traders will now be looking to work new shorts between 1.3500 and 1.3600.

GBP/USD
The GBP/USD was smashed overnight, but unfortunately didn’t get to our sell zone before it rolled over. From here, a move back to 1.5470 to 1.5530 will be seen the next selling opportunity.

USD/JPY
While every other pair was rocked by the last 48 hours, there’s been no change on the USD/JPY – apart from a small move lower. The trading range is likely to continue to dominate trade in the near term.

SILVER
Silver collapsed in price after breaking below 39.00 and this saw the precious metal drop all the way to 36.00. We’re likely to see a short-term retracement higher and traders will be looking for signs of reversal in order to take new shorts.

USD/CHF
The dollar-Swiss provided good gains from traders that bought on a break of resistance at 90.50 with the pair rising up to 91.80 before reversing. The pair looks well supported in the near term and traders will be looking for new shorts on a move back towards 89.30.
GBP/JPY
The sterling-yen continues to provide great opportunities for traders on the short side with every break lower leading to quick moves to the downside. Form here, major resistance is still seen at 119.20, while intra-day resistance is seen at 117.80.

AUD/JPY
The AUD/JPY is in a similar position to the GBP/JPY, with traders waiting for a move up to resistance order to take new shorts. The major resistance is seen at 76.50 with intra-day resistance at 75.25.


OIL
Crude pushed up to our sell zone 85.00 in early Asian trade before it was sharply sent lower by US$5 per barrel in a massive move lower. Now, traders will be waiting for a move back to dynamic resistance at 82.70 for the next shorting opportunity.

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