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:

  • Yesterday’s rally continues overnight with equities notably strong; however, late selling hits
  • Gold, silver both see solid gains as commodities push higher
  • Aussie moves back towards parity before reversing around 100 pips
  • Euro, pound both gain overnight as hopes grow of European endgame
  • USD sees some strength near close
  • Not much data out tonight with the focus on US Durable Goods Orders at 10.30pm

AUD/USD
It’s a pretty mixed picture across markets with big gains in early trading eroded by large losses towards the end of the session. The major level is 0.9860 and a break below that level will be the trigger for another move lower.

GOLD
Like the Aussie, we’re in quite a neutral position after the last couple of days of bullish price action, but the focus will remain on the downside for the time being. The 1630/40 zone will be all-important in determining future direction, with a bounce from this level possibly seen as a chance for new longs

EUR/USD
The Euro has produced a bearish ‘tweezer top” formation over the last 12 hours and with the pattern formed up at resistance at 1.3600 this could trigger selling in the near term. A clear break above 1.3670, however, changes the view to bullish with the potential of a move to 1.3800

GBP/USD
The cable has started to reverse up at higher levels and traders will be looking for shorts while we are below 1.5700. A move above 1.570o will change the view to bullish in the near term.

USD/JPY
While we’ve seen some USD strength toward the end of the overnight session, it doesn’t really change our view on the USD/JPY. As per the last two months, traders will continue to play the range. We see major support above 76.00 and major
resistance seen at 77.70.

SILVER
After another volatile night, silver starts this morning in much the same place it has started every morning this week: around 31.50. While the pair has seen some gains, the focus will remain on the downside until an uptrend is confirmed with a move above 33.70. A move back to 32.50 will be seen as sellable.

USD/CHF
The dollar-Swiss has staged a small bounce after touching 89.30 and traders will remain focused on the upside while we trade above 89.30. Targets for this move are back to 91.80.
GBP/JPY
The sterling-yen continued higher overnight before forming a reversal up at higher levels near 120.50. The market will now be looking for a move back to 119.00/20. A further break below 119.00 sets up a move to 117.00.
AUD/JPY
The AUD/JPY broke above resistance at 75.20 yesterday as the market’s risk appetite was stoked but the pair finally came to a halt up at the next level of resistance (at the swing low from 9 August). From here, traders will be staying focused on shorts until the next layer of support at 75.20.
OIL
Crude pushed above resistance at 82.00 and continued higher to 84.00. We’ve seen a bearish reversal up at that level and traders will be looking for shorts while we are above that level. A bounce from 82.00 could be the trigger for a short-term move back to resistance

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