Market Insights 8 June 2011

Headlines

Bernanke says stimulus still needed for ‘uneven’ US recovery

USD generally weakens on Bernanke statement
AUD/USD bounces back after yesterday’s decision to keep rates steady
Oil, copper and other key commodities push higher
In equity markets, the FTSE closed up less than 0.1%, while Dow was down 0.2%, the S&P 500 fell 0.1%,
while the Nasdaq was virtually flat

AUD/USD
Resistance
1.0780
Support
1.0600
Market Sentiment

Bullish (buy the dip)

The AUD/USD fell about 60 pips following the RBA’s decision to keep rates on hold but bounced back after Bernanke’s
statement caused the USD to weaken. Traders are eyeing the 1.0780 level of resistance, while a break below 1.0660 could
set up a move to 1.0600.

XAU/USD
Resistance
1555
Support
1535
Market Sentiment

Bullish

Gold continues to trade in a tight consolidation pattern with the highs at 1555 providing strong resistance. As we have
mentioned over recent times, with the all-time highs at 1577, the market is expecting that a strong move to new highs will
need some type of fundamental trigger.
 EUR/USD
Resistance
1.4700/50
Support
1.4500/50
Market Sentiment

Bearish (in the near term)

The Euro has pushed right up to resistance at 1.47000/50 and we might see a reversal from these levels. Of course, the Euro’s
price action will be driven by any news related to Greece. A break of 1.4700/50 will be bullish.

GBP/USD
Resistance
1.6550
Support
1.6300
Market Sentiment

Rangebound

The GBP/USD is back at resistance and traders will be looking for signs of a reversal in order to ride prices back to the lower
end of the bracket. A break of 1.6470 could see the GBP push back to 1.6550.

USD/JPY
Resistance
80.70
Support
80.00
Market Sentiment

Bearish

The “round number effect” at 80.00 has continued to provide support with a small bounce seen in the USDJPY overnight. A
break of 80.00 remains a distinct possibility and traders will be looking for a move back to 79.60 if a break does occur.
 AUD/JPY
Resistance
86.30
Support
85.00
Market Sentiment

Bearish

AUD/JPY is now looking increasingly bearish as the most recent price action suggests a descending triangle formation. A break
of 85.00 will be seen as an opportunity to take new shorts and an increase in pessimism could be the trigger for such a fall.

OIL
Resistance
100
Support
97.50
Market Sentiment

Bearish

Oil bounced back on that early overnight optimism but the move higher stalled at US$100. If oil continues to respect the
range, then traders will be looking to ride the move back lower toward support at 97.50.

Economic Calendar & Pivot Points

F/Cast Last F/Cast Last
» AUD: Home Loans m/m 2.4% -1.5% » ALL: Opec Meeting
» CHF: Unemployment Rate 3.0% 3.1% » EUR: Revised GDP q/q 0.8% 0.8%
» EUR: German Trade Balance 14.0B 15.2B » EUR: German Industrial Prod. 0.1% 0.7%
» EUR: French Gov Balance -33.6B » CAD: Housing Starts 184K 179K
» EUR: French Trade Balance -5.6B -5.7B
Pivot Points AUD/USD XAU/USD EUR/USD GBP/USD USD/JPY AUD/JPY CRUDE OIL
Open 1.0717 1542.87 1.4687 1.6438 80.11 85.87 99.49
R3 1.0825 1564.85 1.4863 1.6646 80.70 86.75 102.32
R2 1.0787 1557.51 1.4779 1.6558 80.51 86.48 101.04
R1 1.0747 1550.75 1.4730 1.6499 80.35 86.16 100.27
PP 1.0709 1543.41 1.4646 1.6411 80.16 85.89 98.99
S1 1.0669 1536.65 1.4597 1.6352 80.00 85.57 98.22
S2 1.0631 1529.31 1.4513 1.6264 79.81 85.30 96.94
S3 1.0591 1522.55 1.4464 1.6205 79.65 84.98 96.17

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