Market Insights 30 May 2011

Headlines
Risk appetite remains in play as week ends on positive note `
US markets higher; but economic data mixed as house sales down but confidence higher
USD stays downbeat with traders focused on risk currencies; USDCHF back at all-time lows
AUDUSD trades above 1.07; EUR above 1.44, but both ease in early Monday trade
Commodities push higher with crude back at two-day highs
In equity markets, the FTSE closed up 1.0%, while Dow was 0.3% higher, the S&P 500 gained 0.4%, while
the Nasdaq jumped 0.5%

AUD/USD
Resistance
1.0740
Support
1.0680
Market Sentiment

Bullish

The Aussie has opened higher this morning but has pulled back in the first few hours of trade. A pullback to 1.0680 could see
buyers step in but, with the UK and US both closed for long weekends, we might trade in a tighter-than-usual band and
traders are likely to wait for confirmation before taking new positions.

XAU/USD
Resistance
1538
Support
1526
Market Sentiment

Bullish

Gold broke out of its consolidation pattern on Friday pushing back toward $1540. A pullback to previous resistance around
$1526 would be seen as a buying opportunity by the market. Overall, the bulls are in charge of this market, and traders
wouldn’t be considering the short side until a break below $1515.
 EUR/USD
Resistance
1.4350
Support
1.4000
Market Sentiment

Bearish

The Euro made it up to resistance at 1.4350 before reversing lower and in the near term the market is focused on the
downside. With the EU meeting this week to determine the fate of Greece’s next bailout package, we expect to see a volatile
week of trading. On the downside, support is seen at 1.4000.

GBP/USD
Resistance
1.6500
Support
1.6300
Market Sentiment

Bearish

The GBP/USD moved straight back to resistance at 1.6500 and now looks like it is heading lower in the near term. Please note
there is likely to be little action on this pair in the next 24 hours with both the UK and US markets closed for public holiday.
However, any clear break above 1.6500 changes the view to bullish.

USD/JPY
Resistance
81.00
Support
80.70
Market Sentiment

Bearish

We have seen very little action of note on the USD/JPY, with the pair consolidating after its break below the uptrend line late
last week. The pair is currently consolidating between 80.70 and 81.00 and the market is waiting for a break below 80.70 in
order for the pair to take the next step lower.
 AUD/JPY
Resistance
88.00
Support
84.00
Market Sentiment

Ranging

No change on the Aussie-yen as it remains in its neutral symmetrical triangle formation. The market is clearly waiting for a
break in either direction, but until that time, there is little to do on this pair. A break in either direction, however, will be
quickly snapped up by traders and is likely to generate a big move.

OIL
Resistance
102.00
Support
100.00
Market Sentiment

Bullish

Oil is consolidating after its move higher to the new trading band between $100 and $102. Traders will be watching the $102
level for signs of a breakout but, as we have discussed already, this might not occur while the US and UK have the day off.

Economic Calendar & Pivot Points

F/Cast Last F/Cast Last
» GBP: Bank Holiday »
» USD: Bank Holiday »
» CAD: GDP m/m 0.2% -0.2% »
» CAD: Current Account -2.9B -11.8B »
» »
» »
Pivot Points AUD/USD XAU/USD EUR/USD GBP/USD USD/JPY AUD/JPY CRUDE OIL
Open 1.0716 1536.76 1.4310 1.6483 80.82 86.58 100.66
R3 1.0857 1557.67 1.4579 1.6679 81.70 87.68 102.46
R2 1.0787 1548.00 1.4451 1.6595 81.50 87.31 101.86
R1 1.0747 1541.97 1.4384 1.6550 81.11 86.88 101.30
PP 1.0677 1532.30 1.4256 1.6466 80.91 86.51 100.70
S1 1.0637 1526.27 1.4189 1.6421 80.52 86.08 100.14
S2 1.0567 1516.60 1.4061 1.6337 80.32 85.71 99.54
S3 1.0527 1510.57 1.3994 1.6292 79.93 85.28 98.98
Forex Capital Trading – Ph 1800 ForexCT