Market Insights 28th March 2011

» Headlines

» EUR struggles to hold on to gains as Portugal is yet again downgraded and the sovereign debt issues remain.
» AUD breaks to record highs as the high yielding play continues to attract investors
» Equity markets close the week on a positive note with DJI up 0.4%, S&P500 up 0.32% and Nasdaq up 0.24%
» Gold ends the week towards support on profit taking

» AUD/USD
Resistance
1.0300
Support
1.0190/00
Pivot Points
Open 1.0246
R3 1.0411
R2 1.0353
R1 1.0305
PP 1.0247
S1 1.0199
S2 1.0141
S3 1.0093

The AUD broke to yearly and all time highs on Friday as the markets appetite for the higher yielding AUD triggered stop loss buying above 1.0200
and the market almost saw a breach of 1.0300. Against all major currencies the AUD had an extremely good session on Friday and this looks set to
follow on this week as the negative tone out of Europe see investors comfortable staying long AUD and buying on the dip. The all important level
now on the downside is the breakout of 1.0200 and many traders are calling for this level to hold in the short term.

» EUR/USD
Resistance
1.4200/20
Support
1.4000/20
Pivot Points
Open 1.4047
R3 1.4305
R2 1.4249
R1 1.4167
PP 1.4111
S1 1.4029
S2 1.3973
S3 1.3891

EUR struggled on Friday as yet another downgrade of Portugal saw the ECB encouraging the debt ridden country to accept a bailout package such
as Greece has taken. While the sovereign debt issues continue to raise their head on a regular basis, traders are becoming more and more
dubious as to the topside aspirations of the EUR. Not helping matters was an election defeat for Merkal’s party in the weekend elections. With
the breakdown through the previous lows this morning, the next key levels are 1.4000 and 1.3900.

The information contained in this communication is intended for informational purposes only and is not by any means to be considered "research". Forex Capital Trading Ltd and all of its subsidiaries and affiliates (“the Company”) endeavour to ensure that the information provided in this communication is
complete and correct but do not guarantee its accuracy or reliability. Information, data and opinions may change without notice so readers must check any material item(s) with an advisor before making any trading decisions. The Company is not obliged to update you if the information or data changes. The
Company does not provide investment advice or make any recommendations to investors or traders. The information and analysis in this communication is derived from a variety of sources and using methods that a reasonable person would deem to be reliable. However, the Company cannot accept
responsibility for any trading losses you may incur as a result of your reliance on this analysis or information. We will not be held liable for the consequence of reliance upon any opinion, statement or omission contained herein. Investors should consult with a certified financial advisor before engaging in any
trading activities. AFSL306400
 » XAU/USD
Resistance
1448.00
Support
1420/23
Pivot Points
Open 1429.37
R3 1453.45
R2 1445.67
R1 1437.52
PP 1429.74
S1 1421.59
S2 1413.81
S3 1405.66

Gold opened slightly lower after a session of profit taking on Friday in the North American session. We are now approaching the key level of
support around the 1420.00 level and buyers are expected to emerge towards here. However, a breach of this level to the downside could be
considered a bearish signal and a test of 1410.00 could be the first stop.

» GBP/USD
Resistance
1.6140
Support
1.5990
Pivot Points
Open 1.6007
R3 1.6253
R2 1.6198
R1 1.6118
PP 1.6063
S1 1.5983
S2 1.5928
S3 1.5848

GBP struggled as they got caught in the crossfire of the EUR being hit solidly on sovereign debt concerns. The 1.5980/90 level has been such a
strong level in the past few weeks and last time we were down here there were rumours of Asian central banks having a big interest to buy. These
look like being tested and a break of 1.5960/70 region could be a significantly bearish signal.

» USD/JPY
Resistance
82.00
Support
80.60
Pivot Points
Open 81.40
R3 82.21
R2 81.85
R1 81.59
PP 81.23
S1 80.97
S2 80.61
S3 80.35

USD/JPY has been fairly subdued in recent times and traders seem reluctant to push it too far either way at the moment after the last few weeks
of volatility. Another earthquake has just hit off the Japanese coast (6.5 on the richter scale) but there hasn’t been too much in terms of effects on
the market. Traders seem content to buy on the dip, not wanting to antagonize the BoJ at this stage and a slow and steady push towards 82.00 is
what most traders are calling for.

The information contained in this communication is intended for informational purposes only and is not by any means to be considered "research". Forex Capital Trading Ltd and all of its subsidiaries and affiliates (“the Company”) endeavour to ensure that the information provided in this communication is
complete and correct but do not guarantee its accuracy or reliability. Information, data and opinions may change without notice so readers must check any material item(s) with an advisor before making any trading decisions. The Company is not obliged to update you if the information or data changes. The
Company does not provide investment advice or make any recommendations to investors or traders. The information and analysis in this communication is derived from a variety of sources and using methods that a reasonable person would deem to be reliable. However, the Company cannot accept
responsibility for any trading losses you may incur as a result of your reliance on this analysis or information. We will not be held liable for the consequence of reliance upon any opinion, statement or omission contained herein. Investors should consult with a certified financial advisor before engaging in any
trading activities. AFSL306400
 » GBP/JPY
Resistance
131.20 & 132.50
Support
130.20 & 129.50
Pivot Points
Open 130.30
R3 131.83
R2 131.45
R1 130.95
PP 130.57
S1 130.07
S2 129.69
S3 129.19

GBP/JPY has been remarkably placid the last few sessions and it seems that traders are content to play the 130-131 range for the moment. This
being said there is a rising call for a test lower and a break of 1.5970 in the GBP/USD could see a break lower in the GBP/JPY out of a the range.

» CRUDE OIL
Resistance
105.90 & 106.90
Support
104.40/50
Pivot Points
Open 105.60
R3 107.62
R2 106.77
R1 106.19
PP 105.34
S1 104.76
S2 103.91
S3 103.33

While the unrest in the Middle East continues, Oil continues to be bought on the dip as was the case on Friday. Sentiment stay the same way as
the week opens as continued air strikes over the weekend show no signs of slowing down.

» AUD/JPY
Resistance
83.80
Support
81.30
Pivot Points
Open 83.36
R3 84.96
R2 84.29
R1 83.85
PP 83.18
S1 82.74
S2 82.07
S3 81.63

AUD/JPY has been staging a massive recovery over the past week and we are almost back at pre-quake levels. There have been rumors of massive
fund buying AUD/JPY on the carry trade play again as investors (in particular from Japan) are searching for higher yields than can be obtained
onshore. With the issues domestically in Japan not looking like stopping and AUD rates steady (with a consensus for higher later in the year) the
buying of AUD/JPY looks like continuing.

» Economic Calendar
F/cast Last F/Cast Last
» USD: Pending Home Sales m/m 0.0% -2.8% » EUR: ECB President Trichet Speaks
» USD: Core PCE price Index m/m 0.2% 0.1% » USD: Personal Income m/m 0.5% 0.1%
» USD: Personal Spending m/m 0.6% 0.2% »

Forex Capital Trading – Ph 1800 ForexCT

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The information contained in this communication is intended for informational purposes only and is not by any means to be considered "research". Forex Capital Trading Ltd and all of its subsidiaries and affiliates (“the Company”) endeavour to ensure that the information provided in this communication is
complete and correct but do not guarantee its accuracy or reliability. Information, data and opinions may change without notice so readers must check any material item(s) with an advisor before making any trading decisions. The Company is not obliged to update you if the information or data changes. The
Company does not provide investment advice or make any recommendations to investors or traders. The information and analysis in this communication is derived from a variety of sources and using methods that a reasonable person would deem to be reliable. However, the Company cannot accept
responsibility for any trading losses you may incur as a result of your reliance on this analysis or information. We will not be held liable for the consequence of reliance upon any opinion, statement or omission contained herein. Investors should consult with a certified financial advisor before engaging in any
trading activities. AFSL306400