Market Insights

Headlines
US sharemarkets smashed as investors react to downgrade; Dow down 5.6% Despite downgrade, US bond yields and USD generally rise AUD collapses 300 pips with bulk of selling seen late USD/JPY and USD/CHF both near lows after overnight selling Gold continues higher; breaks above $1720 Sell-off likely to continue today

9 August 2011

AUD/USD
Resistance 1.0300 Support 1.0100 Market Sentiment

Bearish The Aussie has now broken below 1.0400 and this sets up further bearish moves. Over the medium term, we could see a move back to 0.9800. A break below 1.0100 should be the trigger for further selling, while any move back to 1.0300 is also a selling opportunity.

XAU/USD
Resistance 1725 Support 1695 Market Sentiment

Bullish Gold looks like it could do with a short-term pullback and traders will be waiting for a move back to 1695 in order to take new longs. A break of 1725 will also be bullish.

EUR/USD
Resistance 1.4300 Support 1.4060 Market Sentiment

Bearish The Euro is right in the middle of the downward sloping trend channel and has been pushed lower as traders continue to favour US debt over Euro debt. In the near term, the market will be looking for a move back to 1.4060.

GBP/USD
Resistance 1.6450 Support 1.6250 Market Sentiment

Bearish The GBP is now approaching support at 1.6250 and traders will be watching this level carefully for any signs of a break lower. A break below 1.6250 sets up a move back to 1.6000.

USD/JPY
Resistance 78.00 Support 77.50 Market Sentiment

Bearish The USD/JPY has been sent lower on the back of the downgrade and traders will be now waiting for a move below 77.50 before looking to take new shorts.

SILVER
Resistance 40.00 Support 38.00 Market Sentiment

Bearish Silver has been unable to hold on to its gains and the picture looks bearish. A break below 38.00 is likely to see further selling.

USD/CHF
Resistance 76.40 Support 74.80 Market Sentiment

Bearish The USD/CHF has finally broken below 76.00 and this sets up the pair for further losses. Any retracement back to 76.00/40 will be seen as a new selling opportunity.

GBP/JPY
Resistance 127.50 Support 126.50 Market Sentiment

Bearish The GBP/JPY has weakened over the last 24 hours as traders sell out of risk assets. A break below 126.50 sets up a move for further losses.

AUD/JPY
Resistance 80.00 Support 78.50 Market Sentiment

Bearish The AUD/JPY has broken below 80.00 and this now paints a bearish picture. Any move back to 80.00 is likely to be seen as a selling opportunity with targets back to 78.50.

OIL
Resistance 83.00 Support 80.00 Market Sentiment

Bearish Crude saw further losses overnight and now trades with a lower trading bracket, between 80 and 83. Traders will remain focused on the downside.

Economic Calendar
F/Cast
AUD: Home Loans CNY: CPI CNY: IP CNY: Retail Sales 0.7% 6.4% 14.7% 17.7%

Last
4.4% GBP: Manufacturing USD: FOMVC statement

F/Cast
0.3%

Last
1.8%

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