Market Insights

Headlines

25 August 2011

US markets fall for first day in three after German markets sold in lead up to short-selling ban Gold finds support at $1700 after plunging 10% in two days USD strength continues with USD/JPY breaking higher GBP continues to decline as bond flows switch back to US Dow closes 170 points higher as we lead into Jackson Hole speech tonight Tonight also sees UK and US GDP in addition to Bernankes Jackson Hole speech around midnight

AUD/USD
Resistance 1.0525 Support 1.0420 Market Sentiment

Neutral

AUD/USD continues to trade within the symmetrical triangle and traders will be waiting for a break in either direction for new trades. The bias looks to be building on to the long side, with a break of 1.0600 setting up a move back toward the all-time highs.

XAU/USD
Resistance 1780 Support 1740 Market Sentiment

Neutral

Gold has bounced solidly from the 1700 level and, considering the strong uptrend we are in, this must be seen as a bullish sign. That said, the move higher has been capped at the 21-day moving average and this shows we are in at a critical juncture for gold. Tonights speech from Ben Bernanke at Jackson Hole will be all-important for golds future prospects.

EUR/USD
Resistance 1.4500 Support 1.4350 Market Sentiment

Bullish (while above 1.4350) The Euro continues to find support at 1.4350 and traders will continue to use this level for new longs. The upside targets remains back to 1.4500.

GBP/USD
Resistance 1.6360 Support 1.6260 Market Sentiment

Bearish The GBP/USD broke below support at 1.6360 after a poor reading from CBI realized sales and this now changes the markets view to bearish. A further break below 1.6260 will be seen as another selling opportunity.

USD/JPY
Resistance 77.70 Support 77.20 Market Sentiment

Bullish The USD/JPY has now broken above 77.20 and this changes the short-term bias to bullish. That said, traders will be cautious considering the dominant downtrend, but for now, a pullback to 77.20 will be seen as buyable.

SILVER
Resistance 41.20 Support 39.00 Market Sentiment

Bullish Silver found support at 39.00 before bouncing higher overnight. Traders will now be waiting for a move above 41.20 in order to take new long positions.

USD/CHF
Resistance 80.00 Support 78.00 Market Sentiment

Neutral

Theres been no change on the USD/CHF. The trading band between 78.00 and 80.00 remains intact and traders will continue to focus on a break above before taking new longs. After the USD/JPYs break higher, this looks more bullish for USD/CHF.

GBP/JPY
Resistance 127.00 Support 125.50 Market Sentiment

Bearish The GBP/JPY continues to be trapped under 127.00 and traders will use any move back to 127.00 as an opportunity for sellers. The GBP/USD weakness is likely to be reflected in the GBP/JPY and traders will be focused on the down side.

AUD/JPY
Resistance 81.20 Support 79.00 Market Sentiment

Bullish The AUD/JPY is knocking on key resistance at 81.20 and traders will be waiting for a break higher in order to take new longs. Initial resistance is seen at 82.00 and then 83.50.

OIL
Resistance 86.70 Support 83.50 Market Sentiment

Neutral Oil was been frustratingly quiet in recent days as the market remains torn between worries about the US economy and hopes of further easing at Jackson Hole. For now, traders are likely to focus on shorts around 86.70.

Economic Calendar
F/Cast
JPY: Core CPI GBP: Revised GDP CHF: KOF Economic Barometer -0.1% 0.2% 1.84

Last
-0.2% 0.2% 2.04 USD: Prelim GDP USD: Bernanke Speaks

F/Cast
1.1%

Last
1.3%

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