Market Insights

Headlines

2 August 2011

Sentiment shifts back to bearish after US services ISM disappoints Greenback resumes downward trend; USDJPY and USDCHF both break to new lows Traders on edge after Japanese media reports intervention due this week Euro also sent lower on poor manufacturing numbers from Germany Gold higher as flight-to-safety resumes Big day ahead, with RBA decision at 2.30pm (no change expected) and US debt vote tonight

AUD/USD
Resistance 1.1080 Support 1.0910 Market Sentiment

Bullish

The AUD/USD was sent sharply lower as markets became more bearish overnight. This brought the Aussie back to support at 1.0910 and traders will be watching this level carefully. Any break below this level will be bearish, but for now, traders are likely to favour the long side while we trade above 1.0910. Dont forget the RBA rate decision at 2.30pm.

XAU/USD
Resistance 1632 Support 1605/10 Market Sentiment

Bullish Gold found solid buying support back at 1610 over the last 24 hours and used the overnight weakness to kick back toward resistance at 1632. A clear break of 1632 will be seen as a buying opportunity, while any move back to 1605/10 is also likely to bring out the bulls.

EUR/USD
Resistance 1.4270 Support 1.4200/180 Market Sentiment

Bearish The Euro was sent sharply lower overnight on a disappointing manufacturing numbers from Germany. The break below 1.4270 shifts the market sentiment to bearish and traders will be looking to use any move to 1.4270 as an opportunity to take new shorts.

GBP/USD
Resistance 1.6500 Support 1.6230 Market Sentiment

Bullish The GBP is showing signs of indecision as it trades in an increasingly wide range. This is known as a megaphone pattern and usually suggests the market is becoming more uncertain about the future direction of the price action. For now, traders will be looking to play the range, with buyers focusing on 1.6230 and the sellers watching 1.6500.

USD/JPY
Resistance 78.00 Support 76.50 Market Sentiment

Bearish The USD/JPY has seen strong buying the last couple of hours after the Japanese media reported that the Bank of Japan was mulling intervention as early as this week. This has seen the USD/JPY rebound strong from new all-time lows reached overnight. However, the overall downtrend is extremely strong, and traders are likely to be waiting for any push higher to take new shorts.

SILVER
Resistance 41.00 Support 39.00 Market Sentiment

Bullish Silver has be fairly steady over the last few trading session, replicating the movements of its precious metal counterpart, gold. Traders are likely to remains bullish while silver trades above 39.00.

USD/CHF
Resistance 79.50 Support 77.50 Market Sentiment

Bearish The USD/CHF was sent sharply lower overnight as sentiment remained negative toward the USD. We saw a solid bounce from new record lows overnight as this could see the USD/CHF carry through to 78.50 or even 79.50 before taking the next move lower.

GBP/JPY
Resistance 128.20 Support 125.00 Market Sentiment

Bearish As per our recent reports, there has been extremely strong resistance up at 128.20 and traders have used any move up to this level as an opportunity to get short. Overnight, we saw a sharp move lower and break of support, but the fact the market couldnt stay below 125.00 could be seen as a short-term bullish sign. However, traders will favour selling higher prices.

AUD/JPY
Resistance 86.00 Support 84.20 Market Sentiment

Bullish The AUD/JPY has also been pushed higher by reports of Japanese intervention, but only after being sent sharply lower overnight. Traders will be looking to play the range with buying opportunities as 84.00 and selling opportunities at 86.00.

OIL
Resistance 97.00 Support 95.00 Market Sentiment

Bearish Crude has seen some extremely volatile trading over the last few sessions and last night was no exception. Overall, however, the trend is clearly to the downside. For now, the traders will be looking to take new shorts on any move to resistance.

Economic Calendar
F/Cast
JPY: Monetary Base AUD: Building Approvals AUD: HPI q/q CNY: HSBC Man PMI AUD: Cash Rate 0.5% 2.6% -0.9% 4.75%

Last
0.4% -7.9% -1.7% 48.9 4.75% CHF: Retail Sales y/y GBP: Construction PMI EUR: PPI USD: Personal Spend/Income

F/Cast
1.6% 0.1% 0.1%

Last
-4.1% -0.2% -0.2%

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