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 appetite wanes for second night running but US shares see late recovery
  • Euro breaks below major support at 1.2860 to trade at new 15-month lows
  • Aussie sees heavy selling but finds support above 1.0200
  • Dow loses ground in early trade but comes back to close virtually flat
  • Oil loses ground, but gold bounces strongly from 1600
  • All eyes on the month’s biggest economic release: non-farm payrolls. The market expects more than 150

AUD/USD
We saw the Aussie pullback overnight but the move lower fizzled out before getting back to major support at 1.0200. Traders will remain focused on the upside while 1.0200 holds. A break of 1.0400 is also obviously bullish.

GOLD
Gold’s in more of tight trading range in the near term with support seen around 1600 and resistance seen at 1625. A break above 1625 could see a fairly rapid move up to major resistance at 1640.

EUR/USD
The Euro continues to prove traders with the best trading opportunities with the overnight break of 1.2860 seeing a quick move lower. Traders will now be looking for a move back to 1.2860 for their next chance to get short.

GBP/USD
Cable is now pushing lower toward the major support levels just below 1.5400. Traders will be looking for longs around this level.

USD/JPY
The dollar-yen bounced strongly from 76.60 yesterday and has now moved up to resistance at 77.20. Traders will now be considering shorts at this major level of resistance.

SILVER
No real change on silver with traders still looking for shorts on any move up to 30.00. The market will continue to focus on this strategy in the near term.

USD/CHF
The dollar-Swiss has moved up to the top of the trading range at 0.9550 and this provides a solid opportunity for traders looking for shorts. A break above 0.9550, however, quickly changes the view to bullish.

GBP/JPY
The market continues to look for shorting opportunities up at 120.00/35 with the sterling-yen in a clear downtrend. As per yesterday’s report, a break of 119.00 will also be seen as bearish.

AUD/JPY
As per yesterday’s report, the Aussie-yen is starting to look more bullish with a break above 80.00 likely to generate some buying interest. Until then, however, traders will be looking for shorts.

OIL
Despite the overnight pullback, oil still looks to be one of the most attractive opportunities in the market with the potential for geopolitical events generating some risk in this instrument. We’ve seen oil pullback to major support at 101.70 and traders will be considering building new long positions at these levels.

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