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:

  • US advance GDP came out at 1.8%, lower than the expected 2.0% seeing the USD get sold again as it seems the economic data is confirming the view that low interest rates in the US are here to stay.
  • After an initial drift in risk currencies, support was found and we are now probing the highs.
  • Oil struggles to make significantly new highs and rejects a push through 113.00
  • Gold continues it’s upward move as USD negativity and inflation concerns linger
  • US equity markets again had a good day with the Dow up 0.57%, S&P500 up 0.36%

AUD/USD
AUD was initially sold in the European session as the buying interest waned. However, as has been the case for months now on the dip the buyers emerged and we were quickly back up to the highs. Traders now respecting resistance initially around 1.0950 but a break of there could see 1.1000 quickly and traders see this level as a target to aim for.

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XAU/USD
Gold continued on it’s march towards 1550.00. We haven’t been able to get back through 1525 in the past 24 hours and this is now firmly set as the level of support and unless we break back through there traders are content staying long. A break through there could see a push to the next support around 1500 which is a significant level and strong support expected.

EUR/USD
Patient traders are profitable traders and the buyers on the dip did extremely well yesterday as USD negativity continued on the release of worse than expected GDP numbers. From here traders are still calling it higher and see any dip supported by the buyers all the way down to 1.4700 with the initial target as the psychological level of 1.5000 in the coming week.

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GBP/USD
We drifted lower in the overnight session back towards the 1.6600/10 support and traders were quite happy to be buyers on the dip. From here so long as 1.6600 holds traders seem happy to be buyers looking for it to initially test the previous highs of 1.6750 and further onwards to 1.6900 at some stage next week. A break of 1.6600 could change this sentiment

USD/JPY
USD/JPY drifted lower but support was found around the previous lows of 81.40. We are now at the crossroads in USD/JPY with support so close on the downside it looks like being a matter of holding and heading back towards the 82.80 highs or alternately a break of 81.30 gives a bearish signal and traders are looking to go with the break.

AUD/JPY
AUD/JPY retested the break-out on around 88.60 and solid support was found down there. From here traders are seeing this as confirmation that any dip will be supported and a push towards 90.00 in the coming weeks is where their sentiments lie.Only a break back through 88.40 could change the sentiment.

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OIL
Oil had a go at breaking topside overnight and struggled to maintain any gains and was quickly back into the 110-113 range. As a result traders are now calling for further consolidation as they look to see which way the next move is happy to play the range until this occurs. Either a significant break up through 114.00 or down through 108.50 could signal the next move.
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