Market Insights

Headlines

30 November 2011

Markets continue to buy risk with equities and commodity currencies higher Aussie pushes back above parity helped by sharp jump in US consumer confidence data Euro pops higher on US confidence numbers but then falls back below 1.3400 Gold ends higher but cant break 1720; oil surges back above 100 US sharemarket higher in line with other equity markets; Dow finishes 2.6% higher A massive night ahead, with EU meeting and ADP jobs numbers

AUD/USD
Resistance 1.0080 Support 0.9970 Market Sentiment

Neutral

The Aussie is looking more bullish now it has stamped support at 0.9930 and 0.9970 but the market will need to see a little more price action before switching the a more bullish view. For now, however, a pullback to 0.9930/70 will be seen as buyable.

GOLD
Resistance 1720 Support 1705 Market Sentiment

Bearish Golds trading in a tight band between 1705 and 1720 but is clearly finding major resistance up at 1720. Traders are likely to continue to favour the short side until we see a clear break of 1720.

EUR/USD
Resistance 1.3400 Support 1.3210 Market Sentiment

Bearish The Euro produced a false break above 1.3400 and this means the market is likely to maintain its bearish view on this pair. A break of the weekly lows at 1.3270 could be seen as the next opportunity for sellers. Any positive news out of the EU meeting tonight could see this pair push significantly higher.

GBP/USD
Resistance 1.5660 Support 1.5570 Market Sentiment

Neutral Cable is also showing signs of breaking out of the recent downtrend with a move above 1.5660. The market will now be actively considering longs from either 1.5570 or on a break of 1.5660.

USD/JPY
Resistance 78.20 Support 77.60 Market Sentiment

Neutral The dollar-yen reversed after making a false break above 78.20 but weve now found support at 77.60 and this is suggestive of further gains in the near term. On a very short-term basis, a break of 78.00 could see a move back to 78.20. Dont forget we have ADP employment tonight.

AUD/JPY SILVER
Resistance 33.00 76.70 Support 74.00 31.00 Market Sentiment Market Sentiment

Neutral Bearish

We havent seen a lot of action on silver over the last 24 hours with the pair still trapped between 31.00 and 33.00. The market is likely to play the range in the near term.

USD/CHF
Resistance 0.9340 Support 0.9100 Market Sentiment

Bullish The dollar-Swiss remains volatile and traders are likely to try and build new positions at lower levels. The major support levels are now seen at 0.9100. Dont forget we have ADP employment tonight.

GBP/JPY
Resistance 121.80 Support 120.70 Market Sentiment

Neutral

The sterling-yen is now at resistance at 121.80 and traders will be looking for longs on a break above 121.80. Any positive news out of the EU meeting tonight could see this pair push significantly higher.

AUD/JPY
Resistance 78.30 Support 77.20 Market Sentiment

Neutral

The Aussie-yen has seen some solid gains over the last 24 hours in line with the turnaround in risk appetite. Traders will now be looking for longs on a break and ongoing trade above 78.30

OIL
Resistance 100.00 Support 97.20 Market Sentiment

Bearish Oils seen a false break above 100.00 overnight and this is likely to attract selling interest. Traders will be now looking for a potential move back to 97.20.

Economic Calendar
F/Cast
JPY: Prelim IP AUD: Private Capital Exp EUR: ECB Draghi EUR: German Unemployment EUR: CPI Flash 1.1% 8.2% -6k 3.0%

Last
-3.3% 4.9% 10k 3.0% EUR: Unemployment USD: ADP Employment CAD: GDP USD: Chicago PMI USD: Beige Book

F/Cast
10.2% 131k 0.3% 58.5

Last
10.2% 110k 0.3% 58.4

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