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:

  • Standard and Poors downgrades France, Austria, Portugal, Cyprus, Italy, Spain, Malta, Slovakia, and
  • Slovania.
  • All eyes on AUD/USD with ANZ Job Advertisements and Home loans out today.
  • Gold traders bullish as investors in China bought bullion at the fastest pace in more than two years.
  • EUR/JPY falls to 97.16 lowest since December 2000.
  • NASDAQ lost 0.51%, S&P 500 lost 0.49% and the DOW 0.39% at the end of last week.

AUD/USD
The AUDUSD once again remained in its recent trading range after testing the bottom side of it. This was as a result of Standard and Poors downgrading the debt rating of nine European countries including France and Austria. The AUD subsequently rebounded to be mid-range at 1.0300 at our open.

GOLD
Gold suffered from some profit-taking late Friday erratically trading around the important pivot point of 1640. Gold still looks to us like a break of the current range will be to the top-side.

EUR/USD
The EURUSD tested the top-side of Fridays range before Standard and Poors downgrading of nine European countries. Although this was expected as it was unlikely that these countries would return a higher rating than the U.S. the EUR still fell 160 points before rebounding 60.We still favour trading the EUR from the short side looking for rallies to sell into.

GBP/USD
Similar to the EUR the GBPUSD initially tested resistance levels before plummeting towards supports. The 1.5240 area now looks like very important level with penetration of his point to yield 1.5100. Again suggest trading the GBP from the short side with rallies towards 1.5360 providing bears with further short opportunities

USD/JPY
The USDJPY continues to be somewhat of a spectator sport in stark contrast to most other currencies at the moment with a continuation of current theme of consolidation of current trading range with lows tested Friday night before a small rally.
SILVER

Silver has pulled back to support levels around 29.50 area. From here traders will look to take new long positions after rumours of China hoarding metals at the most rapid rate in more than two years.

USD/CHF
The dollar-Swiss came roaring back on Friday with the news in Europe continuing to be grim. Traders will look for any pullbacks to add to their long positions as the ongoing debt crisis will see the USD take full advantage of this situation.

GBP/JPY
The GBP/JPY continues its downward march as news out of Europe continues to weaken this cross. A break below 116.75 will be extremely bearish for this pair.

AUD/JPY
The AUD/JPY continues to trade in a mostly sidewards way with traders happy to continue to play the range. Longer term analysis shows a triangle pattern forming and we may get a break out in the coming weeks.

OIL
Oil came back to major support at 100.00 before bouncing strongly and this appears to be part of a flag continuation pattern. Traders will remain focused on the long side, with a pullback to 100, or a break above 102, the next likely trigger for longs.

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