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:

  • Well received Italian bond auction lifts sentiment overnight
  • Euro breaks to 14-month lows before reversing strongly higher
  • Aussie dollar climbs as equity markets improve
  • Dow sees strong session as index rises 135 points
  • Gold continues lower and breaks major support; oil now appears capped under 100.00
  • Beware of high volatility tonight as year ends on low volumes

AUD/USD
The Aussie bounced from support at 1.0050 yesterday and this now looks to define the trading range in the near term. A push up to 1.0200/20 is likely to see the sellers re-emerge.

GOLD
Gold broke below the major 1532 level overnight and this will be seen as yet another bearish sign for gold. A retracement back to 1560 would be seen as the next chance to get short.

EUR/USD
Like gold, the Euro finally broke below major support overnight, but in another similarity with the precious metal, we didn’t see the Euro continue lower after the break. However, the market will remain bearish on the Euro, with levels under 1.3000 seen as the best opportunity for new shorts.

GBP/USD
Again, we had a similar story on the GBP/USD, with a break below 1.5430 seeing only a small amount of follow-through. The market will remain focused on the downside while we trade under 1.5430.

USD/JPY
The dollar-yen continues to trade within the range with the best strategy looking to sell up around 78.20.

SILVER
Silver tumbled back to support at 26.10 before bouncing higher. Traders will continue to focus on the short side especially on
any retracement back to 28.10.

USD/CHF
The dollar-Swiss has failed up near the highs and this injects a level of uncertainty. Traders will be waiting for a pullback to 0.9400 before considering new longs.

GBP/JPY
The sterling-yen continues to be dragged lower and is now approaching the major lows at 119.40. A break of this level is likely
to generate further selling.

AUD/JPY
The sterling-yen continues to be dragged lower and is now approaching the major lows at 119.40. A break of this level is likely to generate further selling.

OIL
Oil looks to be capped up at 100.00 in the near term and traders won’t be considering longs until we see a clear break above 100.00. A break below 98.30 will quickly change the market’s view to bearish.

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