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 quiet over holiday break; retailers suggest growth still struggling
  • Sentiment slightly improves after stronger US consumer confidence
  • Dow trades three points lower in smallest daily range of the year
  • Aussie, Euro both trading in tight ranges; AUD/USD near 1.0150, EUR/USD around 1.3070
  • Gold inches lower, but oil continues to charge higher
  • Not much on the economic front this week; the focus will be to look for breaks in low volatility

AUD/USD
It’s been like the night before Christmas in financial markets over the last few days – with hardly a trader stirring – but the Aussie still looks slightly bullish. We’ll need to see a break higher to confirm this view in the current low volatility market. A break of 1.0180 could set up a move to major resistance at 1.0220.

GOLD
Gold, along with oil, have been the only two markets to really generate any action over the Christmas break. Gold continues to look bearish with the potential to re-test the lows at 1560. A break of 1590 could be the trigger for such a move. Don’t forget we are moving into a seasonally weak period for gold and other precious metals.

EUR/USD
The Euro is starting to produce some mixed signals with the uptrend line suggesting the pair is trying to push higher. However, the market is likely to continue to favour the downtrend and a break of 1.3040 could trigger some selling. All eyes remain on the major lows at 1.2875 and a break of this level will be a case of ‘LOOK OUT BELOW’.

GBP/USD
Cable looks to have moved into a tighter trading range with trading potentially focusing on the bulls’ side of the market. A pullback to 1.5640 could be seen as a buying opportunity.

USD/JPY
No real change on the dollar-yen with trading likely to play the range with support seen at 76.60/80 and resistance seen at 78.20. In particular, traders will be watching any move up to 78.20 to take new short positions, despite the meanness of downside targets.

SILVER
There’s been no real change in silver with 30.00 still major resistance in the near term. However, we are now approaching support at 28.10 and a break of this level could see a continuation of the selling. As we discuss in our gold analysis, don’t forget January is tough for precious metals.

USD/CHF
The dollar-Swiss is still looking bullish with a break above 0.9400, or a pullback to 0.9250, likely to generate further buying.

GBP/JPY
The sterling-yen still looks bullish and a break above 122.70 will be seen as the next buying opportunity. A pullback to support
could also be seen as buyable.

AUD/JPY
The Aussie-yen is struggling up at 80.00 and traders will be looking for shorts up around that level until we see a clear break above 80.00.

OIL
Oil continues to benefit from the tensions in the Middle East with the push above 100.00 seen as a clear signal to buy. From here, a pullback to 100.00 would be seen as the next opportunity to buy.

To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.