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:

  • Euro plunges below 1.3000 as it approaches 12-month lows
  • Equity markets continue lower on ongoing European fears
  • Aussie trades well below parity in clearly bearish sign
  • Dow down 1.1% with energy leading the losses
  • Gold collapses on European fears, approaches Sept lows
  • We have a big day of data, with Chinese PMI and US unemployment due

AUD/USD
The Aussie gave traders another chance to get short overnight up near 1.0050 and this will be the strategy going forward. A move back towards 0.9980 sets up the next opportunity with potential to head back to 0.9700.

GOLD
Gold’s continued lower with last night’s break of 1620 allowing traders to benefit from new shorts. Today, traders will be waiting for a retracement back towards 1620 before taking new shorts.

EUR/USD
The Euro headed further lower overnight but the move has been unable to push through support at 1.2945. Traders might be cautious taking new shorts in the near term, with the pair oversold. A move back to 1.3020 or 1.3065 is a possibility.

GBP/USD
The GBP/USD pushed up towards 1.5540 before rolling over again overnight. This saw the pair fall back to 1.5410 and this is now support for the pair. Trades will be looking for a move back to 1.5540 before taking new shorts.

USD/JPY
The US dollar remains unable to substantially push above 78.00 with 78.20 now the clear resistance. The USD‘s lack of follow through on this pair suggests is remains a good selling opportunity until we see a break above 78.20.

SILVER
The move below 30.40 triggered fierce selling overnight in line with the battering in precious metals. Traders will be looking to sell on strength, with any move to 30.00 seen as sellable.

USD/CHF
The market has been looking to buy the dollar-Swiss on any weakness but we just haven’t seen the opportunity in this oneway traffic trade. That said, buying the dips remains the best strategy.

GBP/JPY
The sterling-yen remains in the downward sloping channel and traders will continue to focus on this pattern in the near term.

AUD/JPY
The break we were waiting for on the Aussie-yen occurred overnight providing around 80 pips for traders. A move back to 78.00, or a break below 77.20, will be the next trigger for shorts.

OIL

Oil’s move to 100.00 provided a fantastic selling opportunity yesterday and traders that followed yesterday’s report could have benefited from a more than 5% move on the underlying instrument. From here, traders will be looking for a move back to 97.50 before taking new shorts.

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