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:

  • EUR/USD initially recovers on the meeting of EU leaders to try and alleviate the sovereign debt crisis.
  • EU leaders endorse the US118bn rescue package for Portugal.
  • AUD traders eagerly await the release of RBA minutes this morning.
  • IMF Managing Director spends the night in US prison on attempted-rape charges causing concern for possible IMF input in rescue package.
  • Commodities have a negative day as Oil falls 2%, Gold down $15 and Silver languishes on the lows.
  • In equity markets, European markets had another down day, with US markets following with the Dow off 0.38%, S&P500 down 0.62%, and the Nasdaq having a shocker down 1.63%

AUD/USD
AUD had and extremely choppy night with an early rally in Europe on the positivity surrounding the Portugal rescue package seeing risk currencies bought strongly. This euphoria didn’t last long however and as commodities got sold aggressively the AUD also felt the effects. Today seems dependant on what the RBA has to say in their minutes and looks range-bound prior.

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XAU/USD
Patient traders yet again have smiles on their faces as selling the rally paid the bills last night. From here the bearish tone remains as commodities across the board look heavy in most trader’s minds. Those not short already are looking to sell again towards 1500.00 but most now calling for a break of 1480 in the near future.

EUR/USD
The approval of the Portuguese rescues package gave enough positive sentiment to take EUR from the lows initially but the sellers emerged on the rally as many expected and yet again patient traders have profited. From here the sentiment continues to be calling for a lower EUR and unless we break cleanly through 1.4250/00 traders are still calling for a break of 1.4050.

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GBP/USD
GBP has again been fairly quiet in comparison to the EUR overnight as the EUR/GBP moves have been keeping GBP contained in a range. Traders are still happy to sell the rally ahead of tonight’s CPI release and it seems that only a very strong number(above 4.5%) could see the sentiment shift.

USD/JPY
USD/JPY had another quiet night but traders are now starting to feel that a break is imminent and traders are keenly keeping an eye on the topside levels of 81.00/10 as currently bearish sentiment remains but a break back up through there could see the bulls emerge and a push towards 82.00. Failing that a break back through 80.60 keep the bears happy.

AUD/JPY
AUD/JPY broke upwards as the AUD rallied in early Europe but the sellers emerged towards the 86.00 resistance. Traders still seem keen to play it from the short side heading into the RBA minutes this morning and unless we clearly break up through 86.00 this sentiment looks set to continue.

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OIL
Oil traders selling the rally and staying short below 100.00 had a good session again last night. We are now approaching the critical support around 96.00 and there is expected to be some initial support around there but the overwhelming sentiment amongst traders at the moment is to stay short with many expecting the break later this week targeting 92.00

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