forex market insight 19 august 2011

8/6/2019 Forex Market Insight 19 August 2011

1/4

Market Insights 19 August 2011

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

Headlines

AUD/USD

XAU/USD

Resistance

1.0600

Support

1.0350Market Sentiment

Bearish

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

Gold surged higher overnight, breaking to new all-time highs, as investors surged into safety following the US ten-yearbonds drop below 2.00%. The break of 1815 led to a sharp move to 1830. Traders will be either waiting for a pullback to1815 or looking for a new break higher for new longs.

Resistance

1830

Support

1815Market Sentiment

Bullish


2/4

EUR/USD

GBP/USD

USD/JPY

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

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

The Euros sharp move lower has turned the picture more bearish and traders will be looking for short-term strength to taknew shorts. A move back to 1.4360 has the potential for new shorts, while minor resistances is also seen at 1.4400 an1.4450.

Resistance

1.4500

Support


Bearish

Resistance

1.6590

Support


Bullish

Resistance

77.00/20

Support


Bearish


3/4

SILVER

USD/CHF

GBP/JPY

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

The USD/CHF remains in the trading range and traders will looking for longs around 78.00 and shorts around 80.00. A cleabreak of 80.00 will change the markets view to 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 andtraders will be looking for new long sin expectation of a move to 42.00

Resistance

42.00/20

Support

40.00/40Market Sentiment

Bullish

Resistance

80.00

Support


Neutral

Resistance

127.00

Support


Bearish


4/4

AUD/JPY

OIL

Economic Calendar

The information contained in this communication is intended for informational purposes only and is not by any means t o be considered "research". Forex Capital Trading Ltd and all of its subsidiaries and affiliates (the Company) endeavo

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) wan advisor before making any trading decisions. The Company is not obliged to update you if the information or data changes. The Com pany does not provide investment advice or m ake any recommendations to investors or traders. Tinformation 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 r esponsibility for any trading losses you mincur 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 advisbefore engaging in any trading activities. AFSL306400

Forex Capital Trading Ph 1800 ForexCT

F/Cast Last F/Cast Last

JPY: All Industries 2.3% 2.0% CAD: Core CPI 0.2% -0.6% EUR: German PPI 0.2% 0.1% CAD: CPI 0.2% -0.7% GBP: Public Sector Borrowing 0.4b 12.0B FOMC Dudley Speaks

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 to84.00 is likely to be seen as an opportunity to get short.

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

Resistance

84.00Support


Bearish

Resistance

80.00Support


Bearish

forex market insight 19 august 2011

Documents