Market Insights

Headlines
Market sentiment sharply reverses at US 10-year falls below 2.00% USD rises on flight-to-safety; AUD drops almost 200 pips in 24 hours Economic glooms persists as Philly Fed disappoints by most since 1998 Risk currencies loses ground, EUR, GBP and CAD all lower Gold surges to new record high; approached 1830 US sharemarkets collapse on Philly Fed: Dow down 3.7%, Nasdaq down 5.2% After last nights action, tonight has less excitement: CAD CPI and US Fed Dudley speaks

19 August 2011

AUD/USD
Resistance 1.0600 Support 1.0350 Market Sentiment

Bearish

The sharp selldown overnight has switched the bias to bearish on the AUD/USD and traders will now be looking to participate on the downside. While key resistance is seen at 1.0600, traders will view any move to 1.0450 as a new selling opportunity.

XAU/USD
Resistance 1830 Support 1815 Market Sentiment

Bullish Gold surged higher overnight, breaking to new all-time highs, as investors surged into safety following the US ten-year bonds drop below 2.00%. The break of 1815 led to a sharp move to 1830. Traders will be either waiting for a pullback to 1815 or looking for a new break higher for new longs.

EUR/USD
Resistance 1.4500 Support 1.4300 Market Sentiment

Bearish The Euros sharp move lower has turned the picture more bearish and traders will be looking for short-term strength to take new shorts. A move back to 1.4360 has the potential for new shorts, while minor resistances is also seen at 1.4400 and 1.4450.

GBP/USD
Resistance 1.6590 Support 1.6475 Market Sentiment

Bullish The GBP/USD reversed lower overnight but the falls were halted around the 1.475 level. The GBP has been helped recently as larger fixed income investors look for alternatives to the US dollar. This means the markets view on cable will remain bullish with longs around 1.6475 looking for a move to 1.6590.

USD/JPY
Resistance 77.00/20 Support 76.40 Market Sentiment

Bearish The USD/JPY remains trapped at lower levels but we have seen very little prices action on this pair. There were rumours of BoJ intervention yesterday but no action was taken. Traders will continue to focus on the downside, although they will also remain mindful that any intervention is likely to see a huge move higher.

SILVER
Resistance 42.00/20 Support 40.00/40 Market Sentiment

Bullish Silver has continued to inch higher as it moves in sympathy with gold. A base now looks to have been formed above 40.00 and traders will be looking for new long sin expectation of a move to 42.00

USD/CHF
Resistance 80.00 Support 78.00 Market Sentiment

Neutral

The USD/CHF remains in the trading range and traders will looking for longs around 78.00 and shorts around 80.00. A clear break of 80.00 will change the markets view to bullish.

GBP/JPY
Resistance 127.00 Support 126.00 Market Sentiment

Bearish The GBP/JPY continues to find resistance up at 127.00 and traders will continue to use this level for new short positions. Initial targets to the downside are firstly 126.00 and then 125.00.

AUD/JPY
Resistance 80.00 Support 79.10 Market Sentiment

Bearish The Aussie-yen was unable to hold above 80.00 and this means traders will now be looking for trades on the short side. Any move back to 80.00 will be seen as an opportunity to get short.

OIL
Resistance 84.00 Support 80.00 Market Sentiment

Bearish Oil was sent sharply lower overnight after the USs Philly Fed index indicated that economic growth was slowing in the worlds largest economy. This is obviously bearish for crude and saw oil drop almost US$5 per barrel. Any move back to 84.00 is likely to be seen as an opportunity to get short.

Economic Calendar
F/Cast
JPY: All Industries EUR: German PPI GBP: Public Sector Borrowing 2.3% 0.2% 0.4b

Last
2.0% 0.1% 12.0B CAD: Core CPI CAD: CPI FOMC Dudley Speaks

F/Cast
0.2% 0.2%

Last
-0.6% -0.7%

Forex Capital Trading Ph 1800 ForexCT

The information contained in this communication is intended for informational purposes only and is not by any means to be considered "research". Forex Capital Trading Ltd and all of its subsidiaries and affiliates (the Company) endeavour to ensure that the information provided in this communication is complete and correct but do not guarantee its accuracy or reliability. Information, data and opinions may change without notice so readers must check any material item(s) with an advisor before making any trading decisions. The Company is not obliged to update you if the information or data changes. The Company does not provide investment advice or make any recommendations to investors or traders. The information and analysis in this communication is derived from a variety of sources and using methods that a reasonable person would deem to be reliable. However, the Company cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis or information. We will not be held liable for the consequence of reliance upon any opinion, statement or omission contained herein. Investors should consult with a certified financial advisor before engaging in any trading activities. AFSL306400