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:

  • US President Barack Obama sent notice last night to Congress to raise the debt ceiling by 1.2T.
  • Weekly unemployment claims for US surprisingly increased after better than expected nonfarms last week.
  • Bank of England holds interest rate steady at 0.50%. ECB held rates at 1.00%.
  • AUD/USD consolidating waiting for the next move.
  • NASDAQ up 0.51%, S&P 500 up 0.23% and the DOW 0.51% at the end of the US session.
  • Oil declines as the EU’s Iran embargo seems to be delayed for about 6 months.

AUD/USD
The AUDUSD consolidated again overnight in current range testing resistance at 1.0380 after the ECB said its measures to stem the Eurozone debt crisis were proving effective. This news was tempered by weaker than expected economic data out of the US taking us back to test support levels.

GOLD
Gold rose for a third consecutive day holding above crucial 1640 support to test 1658 before profit-taking took us lower again. As long as we hold above 1640 we believe 1658 resistance eventually relents opening up a move towards the crucial 1690 level

EUR/USD
Gold rose for a third consecutive day holding above crucial 1640 support to test 1658 before profit-taking took us lower again. As long as we hold above 1640 we believe 1658 resistance eventually relents opening up a move towards the crucial 1690 level

GBP/USD
As with the EUR the lack of action from the Bank of England with respect to rates provided an opportunity for shorts at resistance at 1.5360. The 1.5270 region the take profit zone for shorts. A break of this support level will open crucial level of 1.5100.

USD/JPY
USDJPY charts looks to have rolled over with pressure now on 76.60 supports looking most vulnerable. A breach of this key level would yield 75.50 which is where BOJ intervened in late October. GBPJPY and EURJPY cross selling also weighing heavily on the JPY.

SILVER
Silver’s technically fuelled rally remained intact overnight. 4 hour uptrend channel support is close at 29.90 levels and provides a good risk reward opportunity. A break of overnight highs at 30.70 will be a bullish signal targeting 32.00 oz levels

USD/CHF
The Swiss Franc was the standout performer on Thursday posting gains of around 1% over the USD. Break of yesterdays support at 0.9500 will have traders targeting 0.9350 over coming sessions. Traders should be aware of EUR/CHF cross being close to SNB’s 1.2000 peg level and will expect an aggressive defence of that level.

GBP/JPY
The GBP/JPY continued its downtrend overnight unable to sustain any move above the 118.00 level for long. We expect traders to continue selling into strength until a change in fundamentals occurs.

AUD/JPY
The Aussie-Yen enjoyed a risk on rally overnight but with USD/JPY in such a painfully narrow range traders will continue to favour the range play trade for now.

OIL
Oil fell sharply during the American session after newswires reported a European Union embargo of Irianian oil may be delayed by 6 months to allow for some countries to organize alternate supplies. Long term uptrend is still intact and traders should look to take new longs around 98.00-98.30 levels.

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