Market Insights

Headlines
Euro pushes higher as EU ministers agree on long-term debt plan Strong Philly Fed also boosts optimism AUD breaks above 1.0800 for first time in month as risk rallies Gold lower as traders exit safety trade, but crude higher US equity markets see strong gains to close 1.2% higher Not much data due today, but US debt negotiations crucial

22 July 2011

AUD/USD
Resistance 1.1000 Support 1.0800 Market Sentiment

Bullish The Aussie burst through resistance at 1.0800 and this now sets up a move to the all-time highs at 1.1000. Traders will be waiting for a pullback to 1.0800 in order to take new longs. Minor resistance is seen at 1.0900.

XAU/USD
Resistance 1610 Support 1575 Market Sentiment

Bullish Gold was sent lower as investors exited the safety trade on the back of the Euro debt agreement. Gold failed near the alltime highs and that could inject some weakness into the precious metal. A move back to 1575 is still likely to be seen as a buying opportunity. The US debt deal will be crucial for the near term price action.

EUR/USD
Resistance 1.4400 Support 1.4300 Market Sentiment

Bullish The positive reaction to the Eurozones debt strategy saw the Euro surge higher, breaking through 1.4300 and heading directly to 1.4400. From here, the market could pause in the near term, but any pullback to 1.4300 will be seen as a new buying opportunity.

GBP/USD
Resistance 1.6420 Support 1.6200 Market Sentiment

Bullish The pound has finally broken higher out of its week-long trading range and this is likely to be seen as a bullish move. Bearish back to 1.6200 will be seen as buyable, while resistance is seen at 1.6420. A pull

USD/JPY
Resistance 78.80/79.00 Support 78.20 Market Sentiment

Bearish The dollar-yen broke lower overnight before bouncing back higher into the trading range. From here, traders are looking for new shorts from higher levels, with any move back towards 79.00 seen as a selling opportunity.

SILVER
Resistance 40.80 Support 38.20 Market Sentiment

Rangebound

Silver failed to continue higher around 40.50 overnight, and this produces a more neutral view of the market. In the near term, a move back to 38.20 is on the cards, but overall, silver looks to be consolidating between 38.20 and 40.80.

USD/CHF
Resistance 82.80 Support 80.80 Market Sentiment

Bearish The USD/CHF continues to head lower after rejecting levels up at 82.80 and traders are focusing in a move back to support at 80.80. With the USs debt negotiations in full flight, expect this pair to be driven by the news flow.

GBP/JPY
Resistance 128.20 Support 127.00 Market Sentiment

Rangebound

Like the GBP/USD, we saw a big push higher overnight as the pound benefited from the Eurozone debt deal. The market will be in a bit of a muddle now, with the GBPJPY forming a bullish pattern, but unable to break above 128.20. Traders will continue to focus in the downside until we see a clear break above 128.20.

AUD/JPY
Resistance 85.20 Support 83.20 Market Sentiment

Bearish The AUD/JPY didnt overly benefit from the overnight move and this means we will stay bearish until we see a break above 85.20. The Japanese yen has displayed some good strength recently as this is hampering the Aussies move higher on this pair.

OIL
Resistance 100 Support 97.50 Market Sentiment

Rangebound

Crude made several attempts higher overnight but the 100 levels has been stubborn for the September crude contract. Traders are likely to continue to work the short side from higher levels, although an eventual break higher is seen as a a likely possibility in the near term.

Economic Calendar
F/Cast
AUD: Import Prices EUR: German Ifo Confidence EUR: Industrial New Orders -.0% 113.7 0.7%

Last
1.4% 114.5 0.8% CAD: Core CPI CAD: Core Retail Sales

F/Cast
0.0% 0.2%

Last
0.5% 0.0%

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