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:

  • AUD reaches record highs as investors flock to the high yielding AUD and commodities consolidate at record levels.
  • The fallout of the S&P outlook change continues as the negativity surrounding the USD as traders aggressively sell USD holdings.
  • Gold touches record highs as a protection against USD weakness as Oil presses into new highs on strong US economic numbers
  • EUR surges as traders again price in higher rates in the coming months
  • US equity markets post solid gains as corporate earnings shine and home sales outperform

AUD/USD
The important resistance level of 1.0600 initially held back the buyers as rumours of Asian Central banks were seen selling AUD, but the overwhelming sentiment to buy higher yielding assets and also the massive negativity surrounding the USD saw it quickly to record highs with traders now set on buying any dip back towards 1.0600/50 region calling for 1.1000

[Sign up here to get this report delivered to your inbox daily]

XAU/USD
Gold traded the upward trend nicely last night making new highs before drifting back and confirming support back toward 1495.00 which was also the previous highs. Traders are still happy to buy dips and go with the trend unless we break back through 1490 which would be a bearish signal, but traders are now calling for 1510.00 in the short term.

EUR/USD
Traders continues pricing in another rate rise next month and massive negativity towards the USD saw EUR cut straight through the resistance at 1.4380 en route to the next levels of resistance around 1.4500. We seem to be consolidating here at the moment but sentiment is for a topside break in the coming sessions unless we break back through 1.4470

[Sign up here to get this report delivered to your inbox daily]

GBP/USD
GBP ground out solid gains although with traders preferring the EUR on the higher yield has kept GBP rallies subdued for the time being and resistance at 1.6420 slowed proceedings again last night but traders still have negativity surrounding the USD and are feeling that eventually GBP will break topside in the coming sessions unless we break back through 1.6350

USD/JPY
USD/JPY stayed on its downward trend albeit with an initial rally as JPY crosses were bought in early Asia yesterday. Sentiment is still against USD across the board and traders are still happy to sell on the rally with resistance coming in now around 82.70- 83.00 region and traders happy to stay short unless that breaks. A break of recent lows at 82.20 gives more bearish signals.

AUD/JPY
As noted yesterday the break of 87.30 was a significantly bullish signal and AUD/JPY surged quickly towards recent highs of 88.60. From here it looks to be consolidating but the sentiment to buy AUD seems to be helping AUD/JPY however traders seem more content to buy the dip rather that get too excited at current levels.

[Sign up here to get this report delivered to your inbox daily]

OIL
Oil surged again last night easily breaking through resistance at 110.00 as US economic data pointed to the recovery continuing. Traders still favour a test of recent highs above 113.00 and following the trend so long as we now stay above 110.00, buying the dip favoured by those not already long.

To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.

Get Free Forex Training Materials from our Forex Education section.