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 continue to buy risk with equities and commodity currencies higher
  • Aussie pushes back above parity helped by sharp jump in US consumer confidence data
  • Euro pops higher on US confidence numbers but then falls back below 1.3400
  • Gold ends higher but can’t break 1720; oil surges back above 100
  • US sharemarket higher in line with other equity markets; Dow finishes 2.6% higher
  • A massive night ahead, with EU meeting and ADP jobs numbers

AUD/USD

The Aussie is looking more bullish now it has stamped support at 0.9930 and 0.9970 but the market will need to see a little more price action before switching the a more bullish view. For now, however, a pullback to 0.9930/70 will be seen as buyable.

GOLD
Gold’s trading in a tight band between 1705 and 1720 but is clearly finding major resistance up at 1720. Traders are likely to continue to favour the short side until we see a clear break of 1720.

EUR/USD
The Euro produced a false break above 1.3400 and this means the market is likely to maintain its bearish view on this pair. A break of the weekly lows at 1.3270 could be seen as the next opportunity for sellers. Any positive news out of the EU meeting tonight could see this pair push significantly higher.

GBP/USD
Cable is also showing signs of breaking out of the recent downtrend with a move above 1.5660. The market will now be actively considering longs from either 1.5570 or on a break of 1.5660.

USD/JPY
The dollar-yen reversed after making a false break above 78.20 but we’ve now found support at 77.60 and this is suggestive of further gains in the near term. On a very short-term basis, a break of 78.00 could see a move back to 78.20. Don’t forget we have ADP employment tonight.

SILVER
We haven’t seen a lot of action on silver over the last 24 hours with the pair still trapped between 31.00 and 33.00. The market is likely to play the range in the near term.

USD/CHF
The dollar-Swiss remains volatile and traders are likely to try and build new positions at lower levels. The major support levels are now seen at 0.9100. Don’t forget we have ADP employment tonight.

GBP/JPY
The sterling-yen is now at resistance at 121.80 and traders will be looking for longs on a break above 121.80. Any positive news out of the EU meeting tonight could see this pair push significantly higher.
AUD/JPY
The Aussie-yen has seen some solid gains over the last 24 hours in line with the turnaround in risk appetite. Traders will now be looking for longs on a break and ongoing trade above 78.30

OIL
Oil’s seen a false break above 100.00 overnight and this is likely to attract selling interest. Traders will be now looking for a potential move back to 97.20.

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