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 sentiment continues to improve on stronger US and Chinese manufacturing
  • Aussie surges higher and approaches 1.0400
  • Euro pushed higher on rising optimism
  • Dow closes 1.5% higher; miners surge in London
  • Gold continues higher; oil gains almost US$4.00 per barrel on Iranian fears
  • Market’s focus now turns to US employment numbers due Thurs and Fri

AUD/USD
The Aussie has started the new year with a bang thanks to the improvement in risk appetite and strong gains in commodities. The next major level of resistance is at 1.0380/400 and a break of this level will be the next trigger for longs.

GOLD
Gold’s pushed higher overnight but remains trapped in the short-term downtrend. The market won’t switch to bullish until we see a clear break above the recent swing high at 1640.

EUR/USD
The Euro’s moved up to major resistance at 1.3080 and this provides traders with another opportunity to get shorts. While we hold under 1.3100, traders are likely to favour the short side.

GBP/USD
The GBP/USD has now pushed towards major resistance between 1.5750 and 1.5800 and traders will now be looking for short-selling opportunities in this resistance zone.

USD/JPY
The dollar-yen continues to remain under pressure and is now approaching major support at 76.60. A break of 76.60 is likely to be seen as the next selling opportunity.

SILVER
Silver, like gold, saw a sharp reversal overnight on the back of improving commodity prices. A break of 30.00 will cause the market to quickly switch to longs, but until then, traders will remain focused on the short side

USD/CHF
The potential double-top we’ve seen in dollar-Swiss is approaching completion with the break of 0.9250 clearly changing the picture to bearish. Traders will be looking for the break before taking new shorts.

GBP/JPY
The sterling-yen remains under pressure with the next level of support seen at 119.00. A move up to 120.30 is likely to be seen as a selling opportunity, as would a break below support.

AUD/JPY
The Aussie-yen is starting to look more bullish with a break above 80.00 likely to generate some buying interest

OIL
Oil pushed substantially higher over the last 24 hours with the tensions in the Strait of Hormuz the major price driver. Oil will now be the major focus of speculative traders. Traders will be focused on the long side with a break of 103.10, or a pullback to 101.70, seen as the next triggers to get long.

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