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:

  • Bad news out of Europe continues to drive roller-coaster markets
  • Dow Jones ends down 0.6% but closes well off its lows
  • Euro still finds resistance at 1.3900 as EU dispels hops of ESEF increase
  • Aussie also has trouble up at near downtrend line at 1.0400
  • Commodities hit lower with gold, silver and oil all lower
  • Weekly unemployment claims out of US at 11.30pm the day’s major event

AUD/USD
We’ve used a daily chart today to illustrate the downtrend line intersecting around 1.0375 and this indicates why the AUD/USD is having trouble at these higher levels. For now, a retracement back to 1.0100 is likely to be seen as a buying opportunity.

GOLD
Gold has rolled over after re-testing the underside of the bearish wedge and this suggest more selling pressure for gold in the near term. A break of 1625 could trigger further selling while a move back to 1670 could also be seen as a selling opportunity.

EUR/USD
The Euro remains within the trading range and the market will be looking to play the range in the near term. The 1.4000 level is seen as major resistance and there’s an expectation of selling pressure up at these levels

GBP/USD
Just like the Euro, the pound is trading in a range and this will be the focus for the market in the near term. A break of 1.5850 will be seen as bullish.

USD/JPY
The dollar-yen is doing less work than a Qantas engineer at the moment with the pair trading in a tiny 20-point range for most of this week. That said, support is still seen around 76.60 and there remains an expectation of a move back to 77.20.

SILVER
Silver looks to be breaking lower in line with gold, but the picture is less clear on silver as we’ve seen in move back into the trading range. That said, the focus will be on the downside until we see a clear break of 32.30.

USD/CHF
The dollar-yen is doing less work than a Qantas engineer at the moment with the pair trading in a tiny 20-point range for most of this week. That said, support is still seen around 76.60 and there remains an expectation of a move back to 77.20

GBP/JPY
The dollar-Swiss has moved higher after testing support but the strength of this move indicates the market is starting to lose confidence in this pair. However, while we stay above 0.8900, the market will stay bullish.

AUD/JPY
The GBP/JPY bounced from 120.00 and this suggests the market will remain in the range for the near term. A move back to 122.60 might see further selling from the market.

OIL
The AUD/JPY continues to trade in the range with support at 77.60 and resistance at 80.00. As per yesterday’s report, with the pair currently in the middle of the range, traders will be waiting for a move to the edge of the range before taking new positions.

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