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:

  • Another choppy night as newsflow drives market; risk ends slightly higher
  • S&P releases warning on all EU nations, while early rumours of IMF involvement dashed near close
  • Aussie continues to strengthen after yesterday’s strong GDP
  • Euro flat after regaining early losses; GBP stronger
  • US sharemarkets slightly lower, oil down, but crude higher
  • Australian employment numbers at 11.30am, BoE and ECB decisions tonight; US weekly jobs at 12.30am

AUD/USD
The Aussie still looks bullish and has moved up to the top of the range. Traders will be waiting for a break above 1.0335 to trigger the next long positions. Aussie jobs ate 11.30 could be the catalyst.

GOLD
Gold has continued to push higher after finding support at 1700. The precious metal has produced a clear step-up pattern and the next target is 1765. The EU summit on the weekend could drive gold higher – successful or not.

EUR/USD
The Euro pushed up into the sell zone overnight at 1.3450 before reversing and from here the focus remains to the downside.
We have an ECB meeting this evening and this could see another rate cut. If so, this will be bearish for the Euro.

GBP/USD
The GBP/USD pushed a little past yesterday’s sell zone overnight but the market will still be looking for shorts in the near term. While we are under 1.5750, the market will favour shorts.

USD/JPY
There hasn’t been much action on the USD/JPY in recent times and as such it’s difficult for the market to make a clear judgment on this pair. With the major moving averages heading lower, keen traders might be looking to the short side.

SILVER
Silver is stuck below 33.00 in the near term and the market will be waiting for a break above 33.00 as the major short-term trigger for longs. More aggressive traders could be looking for longs while we remain above 32.30 in expectation of a move to 33.00.

USD/CHF
The dollar-Swiss reversed from the top of the range yesterday but only pulled back to 0.9225. In the near term, trade is defined by the horizontal range, and traders will be looking to lay the extremes.

GBP/JPY
The sterling-yen pushed up to major resistance at 122.00/20 before reversing lower and this has given traders an opportunity to get short at higher levels. We have a BoE rate decision at 11.00pm and this could inject some uncertainty.

AUD/JPY
The Aussie-yen is still unable to push above 80.00 and traders will be looking to play the range until we see a move above 80.00.

OIL
Oil pulled back to 100.00 before finding some support and has since bounce from that level. Traders are likely to remain bullish in the near term.

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