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:

  • Muted reaction to weekend’s G20; no specific plan announced yet
  • Friday saw strong bullish gains across risk currencies and equities
  • AUD/USD moves back above 1.0300; Euro also sees strength and breaks above 1.3800
  • Commodities stronger on Friday with gold, oil both higher
  • Wall Street moves back into the black for 2011 after 1.5% gain on Friday
  • Chinese data on Tuesday and Euro negotiations will be the major drivers this wee

AUD/USD
The Aussie continues to look strong with the break above 1.0230 on Friday suggesting confidence on behalf of the market. A break above 1.0350 will be the next trigger for longs, while a pullback to 1.0200/30 will also be seen as buyable

GOLD
Gold’s forming an increasingly bearish pattern and a break of 1670 could trigger a bout of selling back to 1640. A clear break above 1700 will change the picture to more bullish.

EUR/USD
The Euro pushed higher on Friday on hopes of more clarity from the G20 after the weekend’s meeting. While we didn’t get much more information, the Euro seems unfazed, holding at highs just under resistance at 1.3900. A pullback to 1.3800 seems likely in the near term. A break of 1.3900 should see further buying.

GBP/USD
The pound was pushed up to 1.5850 on Friday as bullishness swept the globe. The next line in the sand is 1.5850 and a move above that level is likely to generate further buying

USD/JPY
The dollar-yen has pushed back to the top of the range and traders will now be looking for a move back to 76.70 of below. Traders on the short side will want stops above 77.45.

SILVER
Silver remains a neutral until we see a clear break out of this long term trading pattern. Like gold, silver has been unable to fully participate in the recent rally and this makes us more bearish.

USD/CHF
The dollar-Swiss is only just holding on to support at 0.8900/20 and a break below this level will change the market’s view to bearish

GBP/JPY
The GBP/JPY is looking bullish after finding support at 120.50 and then pushing to new highs at 122.60. A break above 122.60 will be seen as the trigger for the next move higher.

AUD/JPY
The AUD/JPY looks more bullish after breaking above 79.00 but we’ll need a break above 80.00 before traders move back into longs. A pullback to 79.00 could also be seen as buyable.

OIL
Oil finally broke above 86.00 on Friday as this sets up the chance of a more bullish view of the market. A pullback to 86.00 is likely to offer the best risk/return with targets back to 88.00.

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