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 hold steady on Friday, but Europe fears still front-and-centre
  • Late selling hits Euro and Aussie on Friday in sign of potential bearishness for week ahead
  • Greenback, yen higher last week as flight-to-safety continues
  • Markets start new week on cautious footing with no clear early bias
  • Oil falls back below 100 while gold sees worst week since September
  • European bond yields and US debt negotiations major drivers this week.

AUD/USD
The Aussie dollar pushed higher on Friday before being swiftly sent lower at resistance around 1.0100. For this week, the major support is still seen at 0.9975, and a break of this level is likely to see further selling.

GOLD
Gold is now trapped in a trading range between 1710 and 1738 but traders will continue to be focused on the downside in the near term. A move back towards 1740 will be seen as a selling opportunity. The 1710 level is currently strong support and a break below that level could trigger heavy selling.

EUR/USD
Like the Aussie, the Euro was pushed up to higher levels on Friday before the sellers moved in. Traders are likely to continue to look for selling opportunities this week with any move up to 1.3600 likely to attract interest.

GBP/USD
The pound came up to retest the previous 1.5880 support level before falling back lower to complete a perfect technical pattern on Friday. This suggests the bears are now in control of this market and traders will be looking for short positions this week.

USD/JPY
The dollar-yen remains under bearish pressure and any move back to 77.00 is likely to attract sellers back into the market. A break of 76.60 is also likely to see further selling.

SILVER
Silver’s tone has changed completely after the break below the trend line at 34.400 and as we enter the new week the focus is likely to remain on shorts. A move back to 32.60 provides a new opportunity to sell.

USD/CHF
The dollar-Swiss remains in a clear uptrend and traders will continue to look for a pullback and in order to re-enter on the long side. A pullback to 0.9100 provides such an opportunity but traders will be looking for an entry signal for confirmation in what has been a choppy market recently.

GBP/JPY
The GBP/JPY is now consolidating in a flag pattern within the resumption of the downtrend move. A move back to 121.90 or a break below the flag pattern is likely to be seen as the next opportunity to get short.

AUD/JPY
The Aussie-yen had a massive top-to-bottom week last week and this is likely to see traders look for new selling opportunities this week. A move back to resistance at 77.85 provides another opportunity to get short this market.

OIL
Crude early strength last week has been nullified by the massive weekly reversal above 100 and this injects a note of caution this week. Traders are likely to wait for the dust to settle this week and take a lead from the direction seen in Monday and Tuesday’s sessions.
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