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:

  • Friday sees European worries dominate as Euro, GBP suffer large losses
  • New week starts with early pop higher, traders likely remain focused on the short side
  • AUD flat on Friday but sees gap higher on Monday
  • Gold, oil both slightly lower on Friday in line with equity losses
  • US sharemarket falls on Friday in shortened post-Thanksgiving session
  • Debt issues at the forefront from both Europe and the US this week

AUD/USD
The Aussie has popped higher in early Monday trading and the sellers will be looking to establish positions as we enter the new week. The dynamic resistance at the 150-hour EMA looks to be the first major level this week although more cautious traders will be looking for a reversal signal before taking new shorts.

GOLD
No real change from gold with the precious metal still consolidating at lower levels. Traders will remain focused on shorts in the near term with a move up to 1710 likely to be sold.

EUR/USD
The Euro’s gapped higher on Monday morning but traders are likely to be looking for new shorts this week. Resistance is seen at 1.3335 and then 1.3410/20. This could be a crucial week for the Euro and traders will be short focused.

GBP/USD
Friday’s trade saw the GBP/USD trade in a tight band between 1.5420 and 1.5500 and these levels will define the market in the near term on Monday. The focus will remain on the short side with a break below 1.5420 likely to be seen as bearish.

USD/JPY
The dollar-yen continues to show some signs of short-term strength as funds flow back into the US bond market and we see a Euro-driven flight to safety. We’d still be cautious of becoming too committed to longs in this very bearish market, but in the near term, a break above 77.80 could see further appreciation.

SILVER
Silver didn’t make it to our sell zone up at 32.20 on Friday as the sellers hit the market just below 32.00. The bears look like they’ll be in control early this week as well, but there’s major support at 30.65 to 31.00 and this might make further falls tough work in the near term.

USD/CHF
The dollar-Swiss is trying to push above major resistance at 0.9330 but all the real excitement is back on the EUR/CHF. Over the weekend, there was further speculation about another round of intervention on the EUR/CHF, and this could see further gains on USD/CHF this week.

GBP/JPY
No real change on the sterling-yen with traders looking for short opportunities while we are under 120.50. A break below 119.30 could see a continuation of the selling

AUD/JPY
The Aussie-yen has popped higher on Mondays open and traders will be mulling over short opportunities at higher levels. If we see further Euro-driven risk aversion this week, the AUD/JPY will be likely candidate for major falls.

OIL
The 95.40 level provided a great buying opportunity for those brave enough to get on board at lower levels on Friday. However, this week, with Europe in focus we could see the sellers return into the market. In the near term, support is still seen at 95.40.
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