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:

  • Market sentiment ends the overnight session more positively following early losses
  • Risk instruments sent sharply lower in early trading after German GDP disappoints
  • EUR sees choppy evening as Merkel and Sarkozy summit offers few solutions; financial tax could concern
  • USD generally flat overnight, although sees gains against CHF; AUD bounces from 1.0400
  • US markets end the session lower after three monster days of gains; Dow closes 0.7% lower
  • Tonight: Inflation in focus as EU CPI out at 7pm and US PPI at 10.30pm

AUD/USD
The Aussie dollar bounced from 1.0400 again overnight giving traders the opportunity to take new longs. For now, the Aussie looks to be trapped between 1.0400 and 1.0530. A break of 1.0530 will be seen as a buying opportunity, while any pullback to 1.0400 will also be seen as buyable.

XAU/USD
Gold continued to grind higher overnight. The market will now be eyeing the 1810 level in expectation of a re-test of the alltime highs. Any pullback to 1760 is likely to be taken advantage of by the bulls, while a break of 1790 has the potential for a short-term move to 1810 (or even higher).

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EUR/USD
The GBP/USD continued with its push higher overnight before running into resistance at 1.6475. Any move above this level will be seen as a buying opportunity. That said, there’s the change of a move back to 1.6350/400, and traders will use any move to build new long positions.

GBP/USD
The USD/JPY has produced some real bunched-up and congested trade over the last week and the market looks to be producing a neutral symmetrical triangle at these lower levels. The market will be waiting for a break out of this pattern but any move is likely to be short-lived unless we see a clear break below 76.40 or intervention from the BoJ.

USD/JPY
The USD/JPY has produced some real bunched-up and congested trade over the last week and the market looks to be producing a neutral symmetrical triangle at these lower levels. The market will be waiting for a break out of this pattern but any move is likely to be short-lived unless we see a clear break below 76.40 or intervention from the BoJ.

SILVER
Silver now looks to be forming a bullish ascending triangle, but any break higher will run into several layers of resistance between 40.00 and 40.40. As we’ve discussed previously, a clear break of 42.00 is needed for silver to take flight to the alltime highs at 50.00.
USD/CHF
The USD/CHF bounced back strongly to resistance at 80.00 before heading lower, and traders will be watching the 80.00 level for any chance to take new shorts. However, be aware that a move above 80.00 will change the market’s view to bullish.

GBP/JPY
The GBP/JPY has continued higher, boosted by the gains in the GBP/USD, but the overall trend remains down. Traders will be waiting for an appropriate signal at higher levels to initiate new shorts.

AUD/JPY
The Aussie-yen hasn’t really followed through after its break above 80.00 and traders will now be a little cautious until we see a further break above 80.75.A break above 80.75 will be seen as a buying opportunity with targets back to 82.00

OIL
No real change on crude with oil still unable to break above 88.00. Traders will be waiting for a break above 88.00 to take new long positions.

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