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 start new week on an upbeat note; risk currencies open around 0.2% higher
  • Friday’s session also positive as markets conclude roller-coaster week
  • USD/CHF gains continue as market wary of further action from Swiss National Bank
  • AUD still trapped under 1.0400; move above this level seen as bullish
  • Crude continues higher on Friday, but gold falls to find support at $1720
  • CPI in focus this week with key numbers due from UK, Eurozone, Canada and US.

AUD/USD
The Aussie is looking ready to break above 1.0400 as it formed a bullish ascending triangle at lower levels. Once we see this break above 1.0400, the market is likely to focus on long positions. Until we see a break above 1.0400, however, the market is likely to be more wary.

[Sign up here to get this report delivered to your inbox daily]

XAU/USD
Gold continued to settle lower on Friday, with the market finding support at 1720. Traders will now be looking for longs around 1720 in the expectation of a continuation of last week’s move higher.

EUR/USD
The Euro remains trapped in the broad trading range between 1.4150 and 1.4400. On Friday, markets bought the pullback to and we’ve seen the pair gain around 100 pips from the lows. Traders will continue to focus on playing the range with sellers taking advantage of any move to 1.4400 and buyers looking for a move back to 1.4150

GBP/USD
The GBP/USD saw a strong reaction higher in Friday’s trade, but the market will remain focused don the downside until we see a clear break above 1.6300. On Friday, the pair was unable to hold above this level and this sets a continuation of the move lower. A clear move above 1.6300 will be seen as bullish.

USD/JPY
No real change on the USD/JPY with the pair still defined by resistance up at 77.00/20 and support below 76.50. The Japanese government made comments over the weekend that suggested that further intervention was possible and this means the move lower might be tough work as sellers remain cautious.

SILVER
Silver made a push to the upper side of the trading range near 39.00 and traders will be using the 39.00/50 level in order to take new shorts in the expectation of move back to 37.00 initially. Silver’s fate this week will be determined by the health of the US dollar and any USD weakness should be positive for silver.

USD/CHF
The USD/CHF’s strong move higher has continued as traders fret over the next move by the SNB. The Swiss government seems focused on reversing the USD/CHF’s decline and this has injected a certain amount uncertainty in the market. That said, the trend is strong down, and traders will be looking to focus on the downside.

GBP/JPY
The GBP/JPY is clearly in a trading bracket between 125.00 on the upside and 123.40 on the downside. Traders will be looking to play the range with a focus on taking new shorts.

AUD/JPY
The Aussie-yen, just like the AUD/USD, is forming a bullish pattern under the all-important 80.00. Traders will be waiting for a break above 80.00 in order to take new longs, while any move back to support at 79.00 will also be seen as buyable.

[Sign up here to get this report delivered to your inbox daily]

OIL
Crude’s break above 83.00 has been bullish for oil, but we’ve recently run into resistance at 88.00. Any pullback to 84.00/50 will be seen as a buying opportunity in expectation of another move back to 88.00.
To have it delivered on your inbox daily hot off the press, subscribe to the Market Insight Report here.

Get Free Forex Training Materials from our Forex Education section.