Gold Strike Weakening In Five Session
Gold ended lower for five straight sessions as the deadlock of negotiations the Greek and US consumption data were satisfactory. US consumer spending shot in May rose 0.9%, the highest monthly increase in nearly six years and exceeded expectations for a rise of 0.7%. Consumer spending includes nearly two-thirds of US economic activity so that this data indicates a positive economic growth.
Improving economy may lead to an increase in the prospect of higher interest rates sooner, thus weakening gold as non-interest assets.
In Brussels, the Greek debt negotiation back end without agreement. These emergency negotiations would likely resume Saturday. As a safe haven asset, gold usually achieve a profit in shades of uncertainty. But the Greek uncertainty can also weaken the Euro and the US Dollar strengthens vice versa. Strengthening dollar tends to weigh on dollar-denominated assets such as gold.
The gold price ended at the level of $ 1173.15 per troy ounce, with daily highs $ 1,178.01 and $ 1,171.50 daily lows.
Technically, gold in today’s trading session on Friday (26/06) 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 Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1169.50 and re-test the maximum level of 1164.25. However, if the price of gold is able to break and hold above 1174.40, the estimated price of gold could potentially test the Resistance 1176.25 and 1181.50.
USDJPY Fall After Japan Data
The movement of the currency market on Friday (26/6), the US dollar weakened against the yen observed after the release of Japanese inflation report this morning.
On-going trade in the Asian session, the USDJPY fell at 0:06% to trade at 123.56. Since this morning, this pair looks to have moved to the session hitting a daily low of 123.55 and 123.67 levels daily highs for the session.
The US Dollar is under pressure to look natural weakening against the yen, while the growth of inflation in the region of Japan has increased. Sign – a sign of recovery of the inflation growth has been preceded by an official report released by the Bureau of Statistics said inflation in the region of Japan rose by 0.3% in May after rising by 0.4% in April.
Meanwhile, on an annual basis, inflation in the region of Japan rose by 0.5% in May after rising by 0.6% in April. At the core inflation on an annual basis, has increased by 0.1% in May.
At the same time, the Bureau of Statistics also reported that consumer inflation has increased by 0.3% in June after rising by 0.5% in May. Survey of economists had forecast that consumer inflation in Tokyo will be increased by 0.1% in June.
Meanwhile, another separate report released by the Bureau of Statistics stated that consumer spending in Japan rose by 4.8% in May, after the natural decline of 1.3% in April.
Technically, the trading session today, Friday (26/06), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 123.00 and 122.10 maximum. Meanwhile, if the Yen were able to break and hold above 123.42, then another alternative scenario the Yen likely to test resistance in 123.60 and 124.10 area.
Kospi Still Weak
Venturing South Korean stock market trading on Friday morning (26/6), the Kospi continued weakening trend on two previous trading session as concerns the market is still going to be the economy after the outbreak Mers.
This sentiment makes Samsung Electronics stocks opened lower 0.75%, 0.86% stake POSCO, KEPCO shares 0.73%, shares of Korea Petrochemical 1:45%. However, shares of Hyundai Motor and KIA motors managed stock opened higher by 1.89% and 0.65%.
Likewise, the movement of this morning’s Kospi index opened 1.66 points or 0:07 shrunk% by becoming 2083.40 points from the previous closing position at 2085.06 points and reached the highest position previously traded at 2088.16 and the lowest point at 2073.95 points earlier ,
Similar to the movement of Kospi index futures this morning, which opened down 0.70 points, or 0:28% to be 253.10 points from the previous closing position at 253.80 points and reached the highest position previously traded at 254.66 points and the previous low at 253.42 points.
Based on the closing traded before, then Analyst estimates that today’s Kospi index movement will try penetrate the first support at 252.80 points with MA5 on BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 251.90 points by the middle MA5 BB10 H4.
If the movement of the index managed to turn around the direction of stronger, then is expected to try to penetrate the first resistance at 254.75 points with A5 on BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 255.60 points with MA5 on BB10 H4.
Technically, the index likely to weaken on the trading session today, Friday (26/06), test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signalling upside.
It is estimated, the index test the first support level 254.00 and 252.80. If it fails at 254.75, then the next index is expected to tend to retest the 254.90 resistance level and continued up to the possibility of being in the 255.50 area.
