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 rally continues after Merkel and Sarkozy says Euro plan will be in place by 3 November deadline
  • Dow surges 3.0% on recovery hopes with financials leading the charge
  • AUD/USD moves back to parity after 6.4% move higher in less than a week.
  • Euro also displays bullishness, but 1.3700 provides resistance
  • Gold, commodities all higher, with gold back at resistance at 1680
  • Tonight’s major data includes UK manufacturing data and Canadian housing start

AUD/USD
The Aussie surged overnight on the back of Sunday’s French-German announcement. The move brought the Aussie up to 1.0015 and traders will now be focused on this level. A break above 1.0015 will be seen as the next buying opportunity while a move back to 0.9880 could also be seen as a buying opportunity.

GOLD
Gold benefited in line with risk instruments last night pushing up to the top of the range at 1680. A move above 1680 shifts the tone from neutral to bullish and is likely to be seen as a new buying opportunity.

EUR/USD
The Euro has found resistance up at 1.3700 and traders are likely to use this level for new shorts until we see a clear break above 1.3700. In the near term, support is seen at 1.3530.

GBP/USD
Like most other major pairs, the GBP/USD is now back at resistance at 1.5700, and traders will be focused on the short side until we see a decisive move above 1.5700.

USD/JPY
The dollar-yen has been capped by the downtrend in recent times and traders will be keeping a close eye on support at 76.60. A break of this level could set up a short-term move to 76.20.

SILVER
Silver is facing some stiff resistance at 32.85 with minor resistance at 32.35. So, traders will be a little bit cautious until we see a substantial move above those levels.

USD/CHF
The dollar-Swiss has come back to test 0.9000 over the last 24 hours and traders will now be focusing on that level as major support in the near term. While the USD/CHF holds above 0.9000 the market is likely to favour the bulls.

GBP/JPY
Not a lot of change on the GBP/JPY with the 120.00 level broadly providing major resistance over the last 24 hours. Initial support is first seen at 119.00 with a break of that level having potential to head back to 117.00.

AUD/JPY
The AUD/JPY has reversed up at 76.80 and traders will be looking for shorts while we are below that level. The first layer of support is seen at 75.80 and a break below that level could trigger further selling.

OIL
Oil has pushed right up to resistance at 86.00 and traders will be keeping a close eye on that level in the near term. A break above that level will turn sentiment bullish but in the mean time, traders could be considering shorts

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