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:

  • Markets continue lower as ECB President Mario Draghi warns of ‘substantial risks’ in 2012
  • New Basel rules seen as negative for banks as financial stocks tumble
  • Euro remains under pressure below 1.3050
  • Aussie sees further losses overnight; approaches three-week lows
  • Gold, oil both generally steady overnight, but bearish bias remains
  • RBA minutes at 11.30am the day’s major announcement

AUD/USD
The Aussie continued lower on Monday and traders will now be looking for a break below 0.9860 as the next opportunity for new short positions. Today’s RBA minutes, at 0.9860, could be the trigger for such a move.

GOLD
Gold gave traders another opportunity to get short above 1600 overnight and traders will remain short until we see a clear break above 1620.

EUR/USD
The Euro didn’t get up to our sellzone at 1.3065 overnight, but did roll over a little earlier and this causes us to maintain our bearish bias. Any move back to 1.3040 should be seen as a selling opportunity.

GBP/USD
Cable still looks bearish with major resistance now seen at the weekly highs at 1.5545. A move below 1.5465 sets up a move to 1.5410.

USD/JPY
As per our recent analysis, traders will be focused on the short side while we trade underneath 78.20. A break of 78.20 will change the bias to longs.

SILVER
Silver’s still looking bearish with 30.00 looking to major resistance in the near term. Traders will be looking for opportunities to get short in the expectation of a move back to 28.15.

USD/CHF
The market looks to have started its holidays early, with little real change on this pair as well. The sterling-yen remains in the downward sloping channel and traders will continue to focus on this pattern in the near term.

GBP/JPY
The market looks to have started its holidays early, with little real change on this pair as well. 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 remains in a consolidation phase between 77.00 and 78.00 and traders will be looking for a break below77.000 as the next trigger for new shorts.

OIL
Traders will still be looking for shorts on oil with the weekly highs at 94.40 now defining trade in the near term. A break of 92.55 is likely to trigger further selling interest.

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