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:

  • Gold breaks 1500.00 an ounce as investors seek safety and inflation hedges
  • AUD bounces off the lows as metals and commodity prices continue to surge
  • US equity markets shrug off yesterdays negative outlook and post fresh gains on earnings from consumer staples and strong payrolls numbers in 38 states
  • EUR rallies on feelings of further imminent rate rises in the Eurozone even as the weaker member nations move closer to default
  • US equity markets closed the week with modest gains, Dow up 0.46%, S&P up 0.39 and Nasdaq up 0.16

AUD/USD
Yet again the surge in commodity prices to record highs helped drag the AUD off the lows as risk currencies recovered overnight. Traders are however treating this as a rally that is allowing them to get short ahead of the resistance at 1.0580/00 region. Whilst traders are bearish initially they are aware a break through 1.0600 is a significantly bullish signal.

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XAU/USD
IT continues to be one way traffic in the gold market as trader’s obsession with buying gold on the dip continued again last night. We open the Asian session towards the support zone and traders seem content to yet again buy the dip unless we break back through 1487.00 which could see the sellers emerge, but the trend continues for the moment

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EUR/USD
EUR rallied off the lows as traders started pricing in another rate rise next month and investors seeking yield bought EUR in droves. It seems initially that the market is ignoring the sovereign debt issues but traders are keeping an eye on the 1.4380/00 region of past support that is expected to create resistance.

GBP/USD
GBP played follow the leader with the EUR, however traders preferred to buy EUR so the rally was not as strong as they believe that the EU will again raise rates before the UK does. This being said traders are initially happy to be sellers around the resistance at 1.6340 but keeping it tight as a break through 1.6460 is a bullish signal and the buyers could emerge.

USD/JPY
USD/JPY continues on its downward trend and as we open the Asian session we sit right near the resistance point of 82.70/80. Traders are still content to be short here and happy to be sellers so long as we stay below 83.00 initially targeting 82.00. A break of 83.00 on the topside is quite bullish and could see the buyer emerge.

AUD/JPY
AUD/JPY has rallied back towards the breakout point and we open the Asian session right on resistance just above 88.00. Traders seem to be happy selling here but leaving a tight stop loss as a break back through 87.30 is a critical break and could provide a significantly bullish signal.

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OIL
After initially testing lower and finding support around 106.00, Oil followed the lead of the other commodity markets pushing higher through previous resistance at 107.50. Traders are currently happy buying the dip so long as 107.50 holds and initially calling for a re-test of 110.00 resistance in the coming sessions.

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