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:

  1. Risk appetite improves as Germany, France say Greece will stay part of EU. Dow has third winning day
  2. Moody’s downgrade of French banks seen moderate, CAC 40 rallies on news
  3. Euro pushes higher on overnight news; pound weakens
  4. Aussie stages bounce from 1.0200, but tone remains bearish
  5. Gold, oil both drift lower overnight
  6. On the agenda today, CPI announcements out of Eurozone and US; SNB policy statement

AUD/USD
The AUD/USD remained under pressure yesterday after the poor housing starts number increased the selling. The pair found support at 1.0200 and staged a bounce form that level, but the market is likely to remain focused on the downside. The RBA bulletin, due at 11.30am, will be the major driver today.

GOLD
No real change on gold at the moment. The downtrend line continues to dominate this chart with resistance seen at 1840. The major level for traders will be the 1800 level as a break below this level will shift the tone to bearish.

EUR/USD
The EUR/USD looks to be forming an upward sloping channel and this is usually seen as a bearish pattern. Traders will be looking for new shorts around 1.3800, while a break below the lower end of the pattern near 1.3600 could also trigger selling.

GBP/USD
The GBP/USD continues to trundle lower in an extremely orderly pattern. A move back toward 1.5820/50 is likely to be seen as a selling opportunity.

USD/JPY
The USD/JPY has fallen back towards the major lows and traders are likely to continue to play the range in the near term. A pullback towards 76.40/50 can be seen as a chance to get long while resistance is seen above 77.50.

SILVER
As we have noted over the last couple of days, silver and gold are forming similar bearish descending triangles and traders will be waiting for a break below major support levels to confirm these patterns. From here, a break below 40.00 is likely to be the major trigger.

USD/CHF
We’re finally getting some movement on the USD/CHF and this is allowing traders to move back into the market. At the moment, the pair is producing a bullish flag pattern and traders will be waiting for a break higher to take new longs. There’s a major report from the SNB at 5.30pm and this could provoke some movement across the CHF pairs.

GBP/JPY
The GBP/JPY broke below 121.30 and this sets up a move back to the all-time lows at 119.20. While we are under 121.30 the focus will remain to the downside.

AUD/JPY
The AUD/JPY broke below the triangle pattern yesterday and this set up a move towards 78.20. The focus will remain to the downside with any move back to 79.50/80.00 will be seen as a selling opportunity.

OIL
As per our last few reports, oil has seen major resistance at 90.00 and traders will continue to sell on any move up to that level. A break above 90.00 will change the market’s view to bullish.

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