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 start new week with roller-coaster session with Italian debt now in focus
  • Late rally in risk sees AUD, EUR regains most of session’s losses
  • USD surges against CHF to trade back above 0.90000
  • Commodities see solid gains with gold, silver notably stronger
  • Dow finishes the session up 85 points with energy and technology the best sectors
  • Today’s focus on NAB business confidence at 11.30am and UK manufacturing at 8.30p

AUD/USD
As per yesterday, the Aussie continues to remain under pressure with major resistance seen at 1.0450. Traders will be looking to sell up at 1.0450 until we see a clear break above that level. Support is seen at 1.0280 and then 1.0200.

GOLD
Gold continues to look bullish after the break above 1770 and traders will be looking to play the long side. A pullback to 1770 would be seen as a buying opportunity while a break above 1800 would also be seen as bullish.

EUR/USD
The Euro remains trapped in the range and traders will be focused on the short side on any push higher into resistance. We see support in a broad zone between 1.3650 and 1.3700.

GBP/USD
The pound saw only a small pullback overnight again suggesting there’s some strength in this pair. Traders will be looking for a pullback toward support at 1.5900 to 1.5950 in order to take new longs.

USD/JPY
There’s been no change on the dollar-yen with the pair continuing to consolidate in an extremely tight band. As per yesterday’s report, traders are likely to wait for the break before taking new positions.

SILVER
As per yesterday, silver looks to be forming a ascending triangle formation which would be seen as a bullish pattern in this context. A break above 35.00 would be seen as a signal that the uptrend is likely to continue. Once 35.00 is broken, the next level of major resistance will be at 35.70.

USD/CHF
The dollar-Swiss looks to have broken out of its short-term downtrend and this will see the market now more focused on the long side. A pullback to 0.8960 will be seen as a new chance for longs.

GBP/JPY
The GBP/JPY has seen a short-term move lower recently and this could set the pair up for a move back to support at 124.00/50. A move back to that level is likely to attract buying interest.

AUD/JPY
Like most other pairs, the Aussie-yen pulled back toward support overnight before staging a late bounce. The pair remains bullish with the first layer of resistance at 81.50 and major resistance at 84.00.

OIL
Crude broke above resistance at 95.00 overnight in a solid move higher and traders will be looking to use 95.00 as support going forward. The next level of resistance is seen at 96.20.

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