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-off trade dominates as European woes dominate trading; US debt super committee fails to agree
  • Euro sent sharply lower in early European trading before staging late comeback
  • AUD now well below parity after a more than 100-pip drop
  • Pound also lower as greenback surges on flight-to-safety
  • Dow down 2.1% as it posts worst losing streak in two months
  • FOMC minutes and US debt super committee the focus over the next 24 hour

AUD/USD
The Aussie dollar broke below 0.9975 yesterday and this resulted in a sharp move lower. Traders will be looking for a retracement towards 0.9880 for new intra-day shorts while a break below 0.9810 will trigger further selling.

GOLD
Gold’s break below 1710 was the trigger for rapid selling overnight brining the precious metal all the way back to 1665. Traders will now be looking for a retracement back toward 1695 to 1710 for the next selling opportunity.

EUR/USD
The Euro was hit by early selling before pushing back higher and traders will be looking for new short around resistance. However, all eyes are now on 1.3420 and a break of this level could result in rapid selling.

GBP/USD
The greenback’s strength saw dollar-yen push back up to resistance at 77.00 and traders will now be looking for shorts from this level. While continued global bearishness could see the USD/JPY push higher, the risk/return ratio means the position is still worth taking.

USD/JPY
The greenback’s strength saw dollar-yen push back up to resistance at 77.00 and traders will now be looking for shorts from this level. While continued global bearishness could see the USD/JPY push higher, the risk/return ratio means the position is still worth taking.

SILVER
Silver bounced from major support around 30.75/95 yesterday and this move higher has provided an opportunity for traders to get short yet again. The price action around 31.75 is suggestive of further weakness sin the near term.

USD/CHF
The dollar-Swiss never pulled back to 0.9100 overnight and traders will instead be re-positioning themselves in order to look for new longs on a break of 0.9240.

GBP/JPY
As we discussed yesterday, the break below the flag pattern was the trigger to sell sterling-yen and this saw a 00-pip movement to the downside. From here, a move back into resistance, or a break below 120.00, will be the next opportunity to short.

AUD/JPY
The Aussie-yen didn’t make it up to our sell zone at 77.85 yesterday but the break below support at 76.60 saw a 100-pip move to the downside. From here, the focus will remain on the short side, either on a retracement higher or a break lower.

OIL
Crude looks to be providing traders with an opportunity to get short after marching up to resistance at 97.50. With the current bearish sentiment sweeping across markets, crude can be expected to weaken. Traders will be looking to have stops above 97.50.

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