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:

  • Risk instruments push higher in Monday’s early trade, but mostly unable to hold on to gains
  • Aussie pushes up towards parity, but then sees selling
  • Euro sees strong 150-pip move before reversing at 1.3400
  • Gold ends higher; oil also finishes higher after roller-coaster ride
  • US sharemarket higher in line with other equity markets; Dow finishes 2.6% higher
  • No major data due today; Europe to remain in focus ahead of Wednesday’s EU meeting

AUD/USD
The Aussie was pushed up towards parity on the back of yesterday’s technical reaction higher and the million-dollar question is whether this signals a turn in sentiment for this market. For now, the focus will remain on the downside, with initial targets back to 0.9665.

GOLD
Like the Aussie, gold is showing some signs of a turnaround, but until we see a break above 1720, traders will remain focused don the short side. A move up to 1720 would be seen as sellable.

EUR/USD
The Euro pushed all the way up to previous resistance at 1.3400 before reversing overnight and the market will now be focused don the short side. The next major level of support is seen at 1.3210

GBP/USD
Cable moved up to resistance at the 150-hour EMA yesterday before reversing and this suggests the downtrend remains intact for the GBP/USD. Traders will now be looking for a move back to support at 1.5420.

USD/JPY
The dollar-yen’s move higher continued yesterday with the break of 77.80 seeing a rapid move back to 78.20. In the near term, 77.80 is now seen as support.

SILVER
Silver now looks to be consolidating in a horizontal band between 31.00 on the downside and 33.00 to the upside. We have shifted our bias to neutral and traders will be playing the range in the near term.

USD/CHF
The dollar-Swiss has come back to major support and traders will now be considering longs at lower levels. The SNB warned of further intervention over the weekend so medium term traders should keep this in mind.

GBP/JPY
The sterling-yen broke above 120.50 overt eh last 24 hours and this now shifts the market tone to a more neutral point of view. A move back to 120.50 could attract buying interest in expectation of a move back to 121.70.

AUD/JPY

The Aussie-yen has rolled over at higher levels and traders will now be looking for new shorts. A break below 77.00 will confirm the downmove.

OIL
Oil presents a pretty mixed picture at the moment after breaking out of the horizontal trading range but then falling back into the range. This false break is usually seen as a bearish sign and traders might now be looking for opportunities on the short side.

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