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 sees turnaround after US housing market sees best result in 18 months
  • Euro higher as impact of IMF deal and better German data boost sentiment
  • Aussie also surges after RBA minutes come in more hawkish than expected
  • Dow sees monster 2.8% gains overnight after new homes data
  • Gold, oil both reverse swiftly higher on risk appetite improvement
  • Rate decision from Japan and UK minutes the day’s major announcements

AUD/USD
The turnaround in the Aussie over the last 24 hours could result in some further follow through in the near term. A break above 1.0100 could see further buying.

GOLD
Gold pushed back into resistance at 1620 and traders will be looking for short positions while we trade beneath 1620.

EUR/USD
The Euro pushed higher overnight in line with the improvement in risk appetite but the pair was unable to hold on to these gains. Therefore, traders will probably still be looking for new shorts on this pair.

GBP/USD
Yesterday’s strong move higher in the cable suggests we might see some further buying over the next couple of days. A pullback to 1.5600 could be seen as a good chance for new longs.

USD/JPY
Still no change on the dollar-yen with the major resistance level still dominating trade. Therefore, 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
Despite the overnight gains, 30.00 remains major resistance in the near term. Traders will be looking for opportunities to get short in the expectation of a move back to 28.70.

USD/CHF
Despite the overnight gains, 30.00 remains major resistance in the near term. Traders will be looking for opportunities to get short in the expectation of a move back to 28.70.

GBP/JPY
The sterling-yen has broken out of its medium-term channel and this is now suggestive of further gains in the near term. A pullback to 121.50 will be seen as the next buying opportunity with potential for a move to 122.15.

AUD/JPY
The Aussie-yen looks to have turned but traders will need confirmation before taking the next move. Any signs of reversal up near 78.90 is likely to be seen as a selling opportunity, while a confirmation of support at 78.00 could lead to buying.

OIL
Oil’s pushed right up to the major resistance level but traders will probably be wanting to see some kind of reversal before taking new shorts up at this level.

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