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:

  • Traders nervous ahead of EU summit, risk sharply lower
  • ECB disappoints markets after holdings rates steady; UK also on hold
  • Aussie plunges after rejecting 1.0300
  • Oil, gold both suffer heavy losses
  • US sharemarkets down more than 2.0%
  • Massive day, with Chinese data at 12.30pm and EU summit later today; keep an eye on the news wires

AUD/USD
The Aussie has been sent lower on the overnight bout of risk aversion and is now back at the bottom of the range. Traders will be looking for longs while 1.0150 holds.

GOLD
Like the Aussie, gold is back at major support at 1700. While we trade above that level, traders will be looking for longs.

EUR/USD
The Euro should be on every trader’s Christmas card list after behaving perfectly this week. Yet again overnight, the move up to 1.3450 provide an perfect selling opportunity. Tonight, we’d be a little more wary, with the political risk from the EU summit meaning that literally anything can happen. Wait for the news and then trade in line with the early moves.

GBP/USD
The GBP/USD has very much mirrored the Euro this week and overnight we saw a beautiful move up to resistance before a sharp move lower. Again, like our review of the Euro, tonight could see an extremely volatile night. Wait for the news and then trade in line with the early moves.

USD/JPY
Dollar-yen continues to do its own thing. Now we are at the bottom of the range, traders will be looking for longs back to 78.00/25.

SILVER
Like gold, silver has pullback to support and traders will be looking for longs while 31.000 holds. A break of 31.00 will trigger shorts.

USD/CHF
We’re switching to neutral ahead of tonight’s EU summit. While we would be looking for shorts under 0.9330, a break above this level would quickly switch the market view to longs

GBP/JPY
Sterling-yen looks to be providing a good break trade opportunity today with short entries below 121.00 providing good value. The pair has the potential to head back to 120.00 pretty rapidly if we see a break.

AUD/JPY
The Aussie-yen has been kind to traders this week as it perfectly respected the trading range. A break below 79.00 provides a new selling opportunity – especially if the EU summit disappoints.

OIL
The change in risk appetite overnight was evident in oil’s sharp move below 100. Traders will be looking for new shorts on any break of 97.80.
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