South Korea Industrial Output Weight the Kospi
Kospi fell after the fall of South Korea’s industrial production returned to investors worried by the threat of economic slowdown in the domestic ginseng. Industrial output fell 1.6% in October; worse-than-expected 0.8% rise and publication of the revised September unchanged.
It can be asserted that anxiety has been expressed by the Bank of Korea and South Korea’s Ministry of Finance on the threat of further economic slowdown in the last quarter of 2014. The Kospi futures were down 0.1% and is now trading at 253.55.
On the external side, investors are still digesting the OPEC decision that maintains production quota of 30 million barrels at a meeting which ended last night. OPEC’s decision has triggered the fall in oil prices to hit a 4-year low $ 67.73 newest overnight. Despite the fall in oil prices can have a positive impact for stock-based consumption, but this negative impact on the energy sector stocks.
Technically, the index on the trading session today, Friday (28/11) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 255.50 and 257.10. If it fails at 253.60, then the next index is expected to tend to retest the support level of 252.80 and continued until the possibilities are in the 250.50 area.
Overshadowed Slowing Inflation, Euro Depreciates
The euro slipped versus the US dollar on Thursday as inflation Germany to the lowest level since February 2010, although the German consumer sentiment data recorded an increase. Annual inflation in the euro zone’s largest economy slowed to 0.5% in November from 0.6% in October, which will add to the pressure on the ECB to act immediately sustain inflation and growth in the 18-nation bloc.
While the data on Friday is expected to show inflation Euro zone slowed down to 0.3%, which is the “danger zone” ECB under 1%.
“The continued trend of slowing inflation will obviously increase the pressure on the ECB to take action,” said Ian Stannard, head of foreign exchange strategy at Morgan Stanley Europe in London. “But the ECB is unlikely to announce new measures in the policy meeting next week.”
Technically, the trading session today, Friday (28/11), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.2400 and 1.2350 maximum. Meanwhile, if the Euro is able to break and hold above 1.2458, then the other alternative scenario that Euro chance to test resistance in 1.2480 and 1.2530 area.
Gold Away From Level $ 1.200; Focus On Switzerland Referendum
Gold back print decline on Thursday, away from the level of $ 1.200 per ounce, as the continuing outflow of large exchange-traded funds and traders remain cautious ahead of the referendum in Switzerland on central bank gold reserves. However, the correction in the exchange rate of the dollar after disappointing US data helped to limit the decline in gold as a safe haven asset.
Trader is now looking forward to voting in Switzerland on Sunday relevant central bank gold reserves to guide the direction of the price of gold. Voting aims to prevent the Swiss National Bank reduces its gold holdings and requires the central bank to have at least 20% of its assets in the form of gold, compared with 8% in the last month.
The results of the latest poll shows support of the Swiss citizens of the idea has been dropped to 38%. If the voting result in a decision ‘yes’, the Swiss central bank will have to buy about 1,500 tons of gold in the next few years, analysts said, pushing up the price of gold.
“Gold is stuck on both sides of the level of $ 1,200 and takes a break to one of $ 1.190 or $ 1.205 to continue moving in either direction,” said Jason Cerisola, gold dealers at MKS Group. “Gold is likely to continue sideways ahead of the referendum due in the US and Switzerland at the weekend,” he said.
Technically, gold in today’s trading session on Friday (28/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1180.80 and re-test the maximum level of 1175.50. However, if the price of gold is able to break and hold above 1186.50, the estimated price of gold could potentially test the 1189.40 and 1193.72 resistance.
