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 surge higher on back of coordinated central bank action
  • AUD jumped almost 400 pips from overnight lows, Euro moves above 1.3500
  • Sentiment also boosted by Chinese rate cuts, strong US jobs numbers
  • Gold, oil both see big gains
  • US sharemarket roars 490 points higher on overnight developments
  • Chinese PMI and US weekly employment in focus tonight

AUD/USD
The flood of money from central banks saw the Aussie surge overnight pushing up to major resistance at 1.0300/50. We’d expect a short term pullback before looking to take new longs.

GOLD
Gold would have been frustrating for traders with an initial false break of 1720 before an eventual significant break above 1720 seeing a move to 17500. This is now the line in the sand and a break above 1750 is likely to see a continuation of the gains.

EUR/USD
The Euro was pushed up to major resistance after last night’s central bank action but traders are likely to remain focused on the downside until we see a clear break above 1.3570. There was no result from the EU meeting last night with the meeting postponed until 9 December.

GBP/USD
The break above 1.5660 provided traders with a good opportunity to get long and this now confirms we are in a bullish phase. A pullback to 1.5660 is likely to be seen as a selling opportunity.

USD/JPY
The dollar-yen reversed sharply lower on the back of the coordinated central bank action. For now, the market is likely to maintain its neutral view while we hold above 77.30. A break below that level could bring out the bears.

SILVER
Silver spiked higher overnight but was unable to push above major resistance at 33.00. For now, traders will be comfortable playing the range.

USD/CHF
The dollar-Swiss pulled back to 0.9100 overnight giving traders an opportunity to get long at lower levels. While 0.9100 holds, traders will remain focused on the upside.

GBP/JPY
The sterling-yen looks bullish in the near term with support seen at 121.40. Traders will be looking for a move back to 122.50.

AUD/JPY
The Aussie-yen’s break above 78.30 provided a good opportunity to get long for a 170-pip move up to 80.00. The market will take a neutral view from here until we see a clear break above 80.00.

OIL
Oil’s moved above 100.00 and this level now looks to be support. While we hold above 100.00, traders will continue to focus on the long side.

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