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 appetite eases after JP Morgan results disappoint in US
  • AUD/USD remains well support after yesterday’s local jobs numbers
  • Euro bounced from 1.3700 is sign of short-term strength
  • Commodities see gold, silver flat, but oil drifts lower
  • Wall Street ends lower with focus on quarterly reporting; Dow loses 0.4%
  • Chinese CPI and US Retail Sales to major data items to finish week

AUD/USD
The Aussie pulled back to 1.0100 before bouncing overnight in a sign of the recent strength seen in the Aussie dollar. Traders will be looking to play the range in the near term with a bias to the upside.

GOLD
Gold’s still unable to move above 1680 and the market will be focused on the short side until we see a clear break above 1680. That said, the precious metal is forming a bullish pattern under resistance and this suggest gains over the medium
term.

EUR/USD
The Euro pulled back to 1.3700 before bouncing higher overnight and traders will continue to focus on the range in the near term. A clear break of 1.3830 is likely to produce further gains.

GBP/USD
The pound traded perfectly last night, coming back to 1.5700 before bouncing higher into resistance. The market will now be waiting for a break above 1.5800 to trigger new longs.

USD/JPY
The dollar-yen pulled back to the uptrend line and traders will now be looking for longs from this level with targets to 77.20. Over the longer term, traders are waiting for a clear break of the multi-month consolidation pattern.

SILVER
Silver now looks to be forming a rectangular consolidation pattern and traders will be waiting for a break higher above 33.00 for new longs. With gold also under major resistance, we could see a coordinated break higher in both.

USD/CHF
The dollar-Swiss continued to find support at 0.8920 and traders will remain focused on the long side for now. A break below 0.8920 might see some selling but, for now, the uptrend remains in place.

GBP/JPY
The sterling-yen has formed an interesting pattern after bouncing from support at 120.80 and this suggests we could be about to see some strength in this pair. Traders will be looking for longs while we hold above 120.80.

AUD/JPY
The AUD/JPY is forming a consolidation pattern at higher levels and traders will be fully committed to longs on a break above 79.00. In the near term, the market will be focusing on paying the range.

OIL
As we’ve said in recent reports, has been unable to break above 86.00 and traders will use this level for new shorts. Broadly, support is seen at 84.00.

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