Market Insights

Headlines
Markets start new week on an upbeat note; risk currencies open around 0.2% higher Fridays 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.

15 August 2011

AUD/USD
Resistance 1.0400 Support 1.0300 Market Sentiment

Bullish (on a break of 1.0400) 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.

XAU/USD
Resistance 1820 Support 1720 Market Sentiment

Bullish 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 weeks move higher.

EUR/USD
Resistance 1.4400 Support 1.4150 Market Sentiment

Rangebound

The Euro remains trapped in the broad trading range between 1.4150 and 1.4400. On Friday, markets bought the pullback to and weve 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
Resistance 1.6300 Support 1.6110 Market Sentiment

Bearish The GBP/USD saw a strong reaction higher in Fridays 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
Resistance 77.00/20 Support 76.50 Market Sentiment

Bearish 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
Resistance 39.50 Support 37.00 Market Sentiment

Rangebound

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. Silvers fate this week will be determined by the health of the US dollar and any USD weakness should be positive for silver.

USD/CHF
Resistance 78.50 Support 76.00 Market Sentiment

Bearish The USD/CHFs strong move higher has continued as traders fret over the next move by the SNB. The Swiss government seems focused on reversing the USD/CHFs 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
Resistance 125.00 Support 123.40 Market Sentiment

Bearish 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
Resistance 80.00 Support 79.00 Market Sentiment

Bullish (on a break of 80.00) 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.

OIL
Resistance 88.00 Support 84.00/50 Market Sentiment

Bullish Crudes break above 83.00 has been bullish for oil, but weve 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.

Economic Calendar
F/Cast
JPY: Prelim GDP AUD: New Motor Vehicles CHF: PPI -0.6% -0.5%

Last
-0.9% 1.3% -0.5% USD: Empire State USD: TIC Long-Term Purchases USD: NAHB Housing Market

F/Cast
0.8 30.4b 15

Last
-3.8% 23.6b 15

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