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Market Insights 25 May 2011

Headlines
Markets stage small recovery early but weaker US markets sap confidence
Risk currencies, including AUDUSD and EURUSD, see early bounce before reversing at resistance
Overnight data mixed, with US home sales improving, but European activity numbers weak
Commodities generally weaker as USD remains buoyant. Softs particularly downbeat
Gold, oil buck trend and creep higher
In equity markets, the FTSE finished 0.4%% higher, while Dow was down 0.2%, the S&P 500 fell 0.1%,
while the Nasdaq dropped 0.5%

AUD/USD
Resistance
1.0580
Support
1.0480
Market Sentiment

Bearish

The Aussie dollar pushed higher in yesterday’s session before finding resistance up at 1.0580. In the near term, this level
looks to have capped gains and the market is expecting the downtrend to continue. Support is now seen at 1.0480 and a
break of this level will be bearish.

XAU/USD
Resistance
1526.00
Support
1480.00
Market Sentiment

Bullish (on the break)

Gold gains continued overnight with the market stalling at 1526 resistance. For traders, the wait is now on until we see a
break of this important technical barrier. The more aggressive traders in the market are looking to take shorts up at
resistance. Support is still seen at 1480.
 EUR/USD
Resistance
1.4135/60
Support
1.3970/4000
Market Sentiment

Bearish

The Euro pushed higher in yesterday’s early trade, moving back to resistance at 1.4135 before rolling back lower. From here,
traders believe the path of least resistance is lower, with a move back to support at 1.3970 to 1.4000 now on the cards.

GBP/USD
Resistance
1.6200
Support
1.6050
Market Sentiment

Bearish

The GBP/USD found some buyers after moving back above 1.6100 yesterday and this resulted in a counter-trend move back
to the downtrend line at 1.6200/20. From here, traders expect the downtrend line will restrain prices and we could see
support at 1.6050. 1.6050 has relevance from earlier in the year and traders will be watching this as a major level of support.

USD/JPY
Resistance
82.00/25
Support
81.50
Market Sentiment

Bearish

The USD/JPY trading action continues to be defined by the broad ascending triangle. While this is a bullish signal, traders will
be waiting for a break of 82.25 before committing to longs. In the near term, the multi-year downtrend is likely to be
respected and a move back to 81.50 is a possibility. However, a clear break of 82.25 changes the market view to bullish.
 AUD/JPY
Resistance
87.20/40
Support
85.30/50
Market Sentiment

Ranging

The Aussie-yen remains in its neutral symmetrical triangle formation and is currently smack-bang in the middle of the range.
Traders will be waiting for a move back to either support or resistance and will most likely be looking to play the range. Any
break of this pattern is likely to see traders take positions in the direction of the move.

OIL
Resistance
100
Support
96.40
Market Sentiment

Bearish

Crude oil pushed back to resistance at 100 last night and has since started to roll back over. Traders will be looking to take
new shorts up near 100 with the most recent action suggesting further gains are a possibility. Support is now seen at 96.40.
Don’t forget crude oil inventories are due at 12.30am AEST.

Economic Calendar & Pivot Points

F/Cast Last F/Cast Last
» »
» BOJ: BOJ Gov Shirakawa » USD: Core Durable Goods 0.7% 2.3%
» EUR: German Consumer 5.7 5.7 »
» EUR: Italian Retail Sales -0.1% 0.1% »
» GBP: Revised GDP q/q 0.5% 0.5% »
» »
Pivot Points AUD/USD XAU/USD EUR/USD GBP/USD USD/JPY AUD/JPY CRUDE OIL
Open 1.0556 1525.77 1.4103 1.6182 82.00 86.56 99.32
R3 1.0685 1544.65 1.4269 1.6377 82.92 87.96 103.68
R2 1.0634 1536.25 1.4201 1.6293 82.56 87.44 101.89
R1 1.0595 1530.46 1.4149 1.6237 82.32 87.04 100.58
PP 1.0544 1522.06 1.4081 1.6153 81.96 86.52 98.79
S1 1.0505 1516.27 1.4029 1.6097 81.72 86.12 97.48
S2 1.0454 1507.87 1.3961 1.6013 81.36 85.60 95.69
S3 1.0415 1502.08 1.3909 1.5957 81.12 85.20 94.38

Forex Capital Trading – Ph 1800 ForexCT