8/4/2019 Forex Market Insight 25 August 2011

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Market Insights 25 August 2011

Risk appetite remains in place as equities surge but gold tanksGold sees largest fall since early 2008 as traders reduce safety tradeFX market virtually unmoved overnight, USD sees small gainsGBP the weakest overnight as UK bonds yields riseDow ends 144 points higher as traders flock back to risk appetitesWeve got a massive night tonight: German consumer confidence, US jobs and Jackson Hole kicks-off

Headlines

AUD/USD

XAU/USD

Resistance1.0540

Support1.0440

Market Sentiment

Neutral

The Aussies in a tight spot at the moment with no clear direction as it continues to consolidate between 1.0440 on thedownside and 1.0540 on the upside. With the moving averages distinctly flat, the market will be waiting for a break out of the range before taking new positions.

Gold was taken back to the 21-day EMA overnight in a natural move after the strong move higher we have seen over the lastmonth or so. The 21-day EMA, at 1760, will be crucial in determining whether gold can resume its move higher. Traders willbe waiting for the market to calm down and consolidate before taking new longs.

Resistance1780

Support1740

Market Sentiment

Neutral

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EUR/USD

GBP/USD

USD/JPY

The USD/JPY has pushed back up towards resistance at 77.00/20 and traders will be looking for new shorts around that level.A clear break above 77.20 is likely to see a sudden move to higher prices, but the market is likely to remains focused on theshort side.

The GBP/USD fell back to the 21-day EMA overnight and traders will be looking for a bounce around 1.6320/60. The poundhas recently been under pressure as US debt fears have become more becalmed. A break of 1.6300 will be seen as bearish.

The Euro pulled back towards 1.4350 overnight and traders will now be looking for longs around that level. A move from1.4350 would look to have targets back to 1.4500.

Resistance1.4500

Support1.4350

Market Sentiment

Bullish (while above 1.4350)

Resistance1.6620

Support1.6450

Market Sentiment

Bullish

Resistance77.00/20

Support76.30

Market Sentiment

Bearish

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SILVER

USD/CHF

GBP/JPY

The GBP/JPY provided another opportunity to sell at 127.00 over the last 24 hours before falling back to support at 125.50.From here, we could see a small bounce, but traders will be looking for new shorts around 127.00.

The USD/CHF remains trapped in consolidation and traders will be waiting for a break in either direction. Importantly, we haverecently seen some signs of US strength, and with a large number of stops above 80.00, this might be seen as the path of least resistance.

Silver has been sent lower in line with gold as money rushed out of the precious metals space. That said, the picture remainsbearish, but traders will be waiting for a period of consolidation and an entry signal before taking new longs.

Resistance44.00

Support39.00

Market Sentiment

Bullish

Resistance80.00

Support78.00

Market Sentiment

Neutral

Resistance127.00

Support125.50

Market Sentiment

Bearish

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AUD/JPY

OIL

Economic Calendar

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F/Cast Last F/Cast Last

EUR: Gfk German Consumer 5.2 5.4 CAD: Corporate Profits 4.2% CHF: Employment Levels 4.11m 4.11m USD: Unemployment Claims 403k 408k GBP: Realised Sales -10 -5 ALL: Jackson Hole kicks off

Very little change in the crude market overnight with trade still dominated by resistance at 86.70 and support at 83.50. Oilhas been an interesting market because while US shares have rallied on poor economic news, oil has been struggling. Anybreak in any direction is likely to be seen as tradable.

The AUD/JPY is starting to look more bullish but traders will be waiting for a move above 81.20 before initiating new longs.Any pullback to 79.00 can also be seen as buyable.

Resistance86.70

Support83.50

Market Sentiment

Neutral

Resistance81.20

Support79.00

Market Sentiment

Bullish