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 generally lower on Friday after Fitch puts France on credit watch
  • ECB opens new week by pouring cold water on ECB hopes; new EU meeting due tonight
  • Euro pushes to top of the range on Friday before reversing
  • Aussie also pushed higher Friday before seeing late selling
  • Gold creeps higher on Friday, oil falls further to cap worst week since September
  • Main focus this week will be tonight’s EU meeting and potential downgrades from credit rating agencies

AUD/USD
The Aussie pushed up toward 1.0030 on Friday before being sold lower and the fact we have been unable to hold above parity is likely to be seen as a bearish sign.

GOLD
Gold pushed up to 1600 on Friday and this now looks to be short-term resistance. The market will remain focused on the short side until we see a break above 1600/20.

EUR/USD
The Euro found resistance up at 1.3065/85 on Friday and traders will stay on the short side for the time being. Tonight’s meeting of EU finance ministers introduces further event risk, so watch the news wires.

GBP/USD
Cable also pushed up into the resistance zone on Friday before reversing lower and this suggests the market will be looking for shorts as we enter the new week. Traders will look to have stops above 1.5560.

USD/JPY
The USD weakness we saw on Friday translated into losses on the dollar-yen and traders will be focused on the short side while we trade under 78.20.

SILVER
Silver pushed up into resistance at 30.00 before reversing lower and this now looks to be the major line in the sand. Traders will be looking for shorts while we remain under 30.00.

USD/CHF
Not much change on this pair on Friday, so as per our recent analysis, we’ve seen dollar-Swiss move back to support at 0.9330 and traders will be looking to take new longs around this level.

GBP/JPY
No real change for the 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 Aussie-yen now looks to be consolidating at lower levels and traders will be looking for a break below 77.000 as the next trigger for new shorts.

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OIL
Oil reversed from lower levels and traders will now be looking cautiously for shorts. A move up to 94.75 or 96.00 will be seen as the next chance for shorts.

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