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:

  • Markets continue lower after UD Fed disappoints with no further stimulus
  • Euro hit by selling as it reaches new 11-month lows
  • Aussie also suffers as it plunges below parity
  • Dow down 66 points, but closes well off its lows
  • Gold breaks below 1650, but oil higher on geopolitical and supply fears
  • UK unemployment the day’s major data

AUD/USD
As per yesterday’s report, the move up to 1.0150 provided a beautiful opportunity for new shorts, with the Aussie diving all the way back to parity. The Aussie’s found some support at parity and this could result in a move back to resistance at 1.0050

GOLD
The break below 1650 that we discussed in yesterday’s report led to a rapid move lower, helped by the fact that the US Fed disappointed the market by providing no further stimulus. From here, traders will be looking for a retracement back to 1650 before initiating new shorts.

EUR/USD
The Euro continues to provide opportunities for traders with last night’s break of support at 1.3150 leading to a 135-pip move lower. Traders will now be focused on either a retracement back to 1.3150 or a break below 1.3000.

GBP/USD
The GBP/USD marched right up to the sell zone at 1.5620 overnight before heading more than 150 pips lower. From here, the focus remains on the downside, with a move back to 1.5540 seen as sellable

USD/JPY
The US dollar is looking stronger at the moment but it hasn’t translated into clear gains for the USD/JPY. Traders are likely to keep focusing on the short side up at 78.00 until we see a clear break higher.

SILVER
Silver is now looking resolutely bearish and traders will be looking to take advantage of the downside. A move back to 31.40 provides the next selling opportunity.

USD/CHF
The dollar-Swiss continues to look bullish but didn’t make it back to our buy zone at 0.9300 overnight. Traders will be looking to participate in the uptrend by buying in weakness.

GBP/JPY
The sterling-yen continues to display a descending flag pattern and as this pattern is usually seen as bullish traders will be looking to pick up longs at the lower end of the pattern. However, make note that the GBP/USD is showing weakness and this leads to longs on sterling-yen having less conviction.

AUD/JPY
No change on the AUD/JPY. The pair continues to trade just above support at 78.00 and a break below this level would be likely to generate selling interest.

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OIL
Oil surged higher overnight on a combination of geopolitical and supply fears. However, the inability to hold over 100 means that the bears are likely to see this as a new selling opportunity while we hold below this important resistance level.

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