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:

  • EU summit surprises no one as it ends with no clear resolution; Germans approve extension of EFSF
  • Equity markets shrug off EU news, but Euro heads lower
  • Aussie stages bounce following earlier selling on CPI numbers
  • Gold, silver both push higher; copper, oil reverse from highs
  • Dow finishes 162 points higher despite EU delays
  • Europe remains on the agenda (obviously) while US GDP and job numbers at 11.30pm are also crucial

AUD/USD
The Aussie was sent lower by yesterday’s CPI low numbers that suggest a rate cut next week is now much more likely. However, the Aussie found clear support at 1.0320 and this means the bulls will stay in control until we see a break below that level.

GOLD
Gold looks to have benefited from increased fears driven by the Europeans’ indecision. Yesterday we saw good support at 1695 and traders will be looking to buy weakness or take new longs on a break of 1695.

EUR/USD
The Euro continues to provide opportunities by playing the range with shorts profitable from 1.3960 overnight and the move back toward 1.3800 also seeing buying appetite. Traders will continue to play the range in the near term until we see a clear break.

GBP/USD
The pound’s high wave pattern resulted in a pullback to support at 1.5900 and this will keep the bulls interested at lower levels. Buyers will be looking for a pullback to 1.5900 or a break above 1.6040.

USD/JPY
The dollar-yen has pushed higher from the lower levels under 76.00 and is currently defined by the downward sloping channel. Traders will be looking to trade the range in the near term.

SILVER
Silver has formed an intense consolidation at higher levels with 34.00 the major sticking point for further gains. A break of 34.00 will be the trigger for the next move higher.

USD/CHF
The dollar-Swiss moved up to resistance at 0.8880 overnight before being sold lower. A move back to resistance or a clear break below 0.8740 is likely to be the next trigger for shorts.

GBP/JPY
Again, there’s been no real change on the sterling-yen with the price action contained within the trading range. We saw a slight overshoot to the downside but the 121.00 level provides broad support. The market will continue to look for opportunities at either extreme of the trading range.

AUD/JPY
Like the GBP/JPY, the AUD/JPY overshot to the downside before bouncing but support is still seen between 78.00/50. The market has remained bullish on this pair and will likely remain positive until we see a clear break below 78.00.

OIL
Crude came back to 90.00 before bouncing and the major levels are now 90.00 to the downside and 92.00 to the upside. The market is likely to remain bullish in the near term.

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