Market Insights 6 June 2011

Headlines
Friday’s extremely poor US jobs numbers hit confidence, greenback
Euro hits four-week highs against greenback as Greek debt crisis concerns ease
AUD/USD trades higher, close to 1.0800, after US jobs numbers
Commodities generally higher on USD weakness
In equity markets, the FTSE closed up 0.1%, while Dow was down 0.8%, the S&P 500 fell 1.0%, while the
Nasdaq dropped 1.5%
Looking ahead to the week, we have rate decisions in the Eurozone, the UK, Australia and New Zealand as
well as employment data from Canada and Australia

AUD/USD
Resistance
1.0780
Support
1.0600
Market Sentiment

Bullish

The AUD/USD benefited from the USD weakness on Friday pushing back to three-week highs at 1.0780. While the AUD is
very close to resistance, the overall picture is seen by the market as more bullish. Traders will be looking for a break of
1.0780 in order to initiate new longs.

XAU/USD
Resistance
1551.00
Support
1520.00
Market Sentiment

Bullish

Gold is in a similar position to the AUD/USD. While the market is looking technically strong, it is close to key resistance and
we might see gold trade in a congested fashion in the near term. Analysts believe gold might need some kind of fundamental
trigger to push above 1551 and then all-time highs at 1578. Support is seen above 1520.
 EUR/USD
Resistance
1.4750
Support
1.4400/50
Market Sentiment

Bullish

The Euro was pushed higher towards the end of last week as it benefited from the improving likelihood of a Greek bailout and
the weakening US dollar. After the strong gains last week, a pause might be warranted, but any further news on the Greek
situation will continue to drive sentiment. A pullback to 1.4400/50 will be seen as buyable by traders.

GBP/USD
Resistance
1.6550
Support
1.6300
Market Sentiment

Rangebound

The GBP/USD found support once again at the 1.6300 level on Friday and has since bounce back to the middle of its recent
trading range. From here, the market is expecting the pair to move back to the upper side of the consolidation pattern at
1.6550. Traders will be looking to play the range in the near term.

USD/JPY
Resistance
80.70
Support
80.00
Market Sentiment

Bearish

The USD/JPY continued to head lower on Friday until it found some buying support just above 80.00. The “round number
effect” at 80.00 has provided good support in recent times and more aggressive traders will look to initiate longs at that level.
Any move back to 80.70 will be seen as an opportunity to take new shorts.
 AUD/JPY
Resistance
86.70
Support
85.70
Market Sentiment

Rangebound

AUD/JPY has now broken out of its broad triangle formation on two occasions, each time in opposite directions. Clearly, the
market has no confidence in this pair for the moment, and it remains trapped in a tight range between 85.70 and 86.70.
Overall, the momentum slightly favours the bulls and traders might consider taking longs at lower prices.

OIL
Resistance
101.00
Support
98.00/50
Market Sentiment

Bearish

Oil appears to be drifting lower as part of a larger consolation pattern produced over the last couple of months. USD weakness
has been the most recent price driver with Friday’s falls in the greenback seeing oil push back above US$100 per barrel. The
market sees resistance at 101.

Economic Calendar & Pivot Points

F/Cast Last F/Cast Last
» AUD: ANZ Job Adds. m/m 0.3% » CAD: Ivey PMI 59.1 57.7
» USD: FOMC Ploser Speaks » CAD: Gov. Council Macklem
» EUR: PPI m/m 0.8% 0.7% » USD: Treasury Sec Geithner
» CAD: Building Permits m/m -2.3% 17.2% » USD: FOMC Fisher Speaks

Pivot Points AUD/USD XAU/USD EUR/USD GBP/USD USD/JPY AUD/JPY CRUDE OIL
Open 1.0714 1541.94 1.4631 1.6423 80.24 86.00 100.66
R3 1.0974 1574.44 1.4891 1.6632 81.58 88.37 104.14
R2 1.0874 1560.72 1.4767 1.6535 81.23 87.49 102.43
R1 1.0794 1551.33 1.4699 1.6479 80.74 86.74 101.55
PP 1.0694 1537.61 1.4575 1.6382 80.39 85.86 99.84
S1 1.0614 1528.22 1.4507 1.6326 79.90 85.11 98.96
S2 1.0514 1514.50 1.4383 1.6229 79.55 84.23 97.25
S3 1.0434 1505.11 1.4315 1.6173 79.06 83.48 96.37

Forex Capital Trading – Ph 1800 ForexCT