Gold Prices Slump Again
Gold in Asian trade on Wednesday (8/7) morning still continue a fairly steep decline. Is because of the deadline for Greece to provide credible reform package to activate it and open the banking system.
Division of the New York Mercantile Exchange, gold for August delivery dropped -0.03% to the level of 1.152.30. State the Greek gods have a deadline of five days to submit a detailed package of reforms to the international creditors as a bailout or risk “bankruptcy” and the financial system, as warned by the European Council President Donald Tusk and President of the Commission Jean Claude Juncker in Brussels.
“The reality is that we only have five days to find a major deal, and until now I’ve avoided talking about deadlines, but tonight I have to say it loud and clear about the deadline which expired at the end of this week. Tusk continued.
If there is no agreement, it also means that the worst case scenario, where the failure to find an agreement would lead to the bankruptcy of Greece and the banking system also collapsed.
Last night, gold futures fell three-month low amid a stronger dollar, triggered by concerns related to the Greek debt crisis and Chinese equity markets plunge fall. On the other trade Comex, silver for September delivery fell 0.75% to a level of $ 15,082 troy ounce, while copper for September delivery slumped 0.64% to 2,455 a pound.
Technically, gold in today’s trading session on Wednesday (08/07) 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 1148.10 and re-test the maximum level of 1042.80. However, if the price of gold is able to break and hold above 1153.20, the estimated price of gold could potentially test the Resistance 1155.50 and 1160.25.
Euro Pressured Ahead of Eurogroup Meeting
The euro came under pressure break below the psychological level of 1.1000, but held above the support level of 1.0900 ahead of the Eurogroup meeting since the referendum Greek bailout creditors rejected the proposal.
So far the pairing EURUSD fell -1.12% to 1.0931, after reaching the highest point at 1.1058 intraday and daily lows at 1.0929.
Opportunities compromise between creditors with the Greek government is still minimal, because the lenders are still reluctant to disburse aid without strict implementation of fiscal reforms, specifically its German worrying if the request leniency given the Greek budget tightening will open up opportunities for other member states to ask the same.
On the one hand, Greece is also unlikely to accept a deal that does not address the problem of structural long-term Greek debt. While the ECB also increases the pressure on Greece by stating that the program is difficult to add liquidity provision. As a result the longer the Greek bank closed, will add to the difficulties of the Greek economy into a crisis of food and medical equipment.
Various analysts estimate that a deal may be reached only the extension of debt, but the debt leeway might be more difficult to reach an agreement.
Technically, the trading session today – Wednesday (08/07), the pair Euro-dollar likely to move into negative trend.
The weakening of the Euro mainly expected soon retests the support at 1.0930 minimum and maximum 1.0870. Meanwhile, if the Euro is able to break and hold above 1.0989, then the other alternative scenario that Euro likely to test resistance in 1.1010 and 1.1060 area.
Yen Rebound, Nikkei fell
The Nikkei index of the Tokyo Stock Exchange in early trading Japan on Wednesday morning (8/7), was opened by turning distressed condition of the rally earlier traded due rallynya Japanese Yen.
Strengthening of the Japanese yen is still in progress from the US overnight trading session, where the morning was underpinned by surging Japanese Current Account Data ago in May to ¥ 1.880B and managed to ward off the results of the previous release on ¥ 1.326B and expectations of a decline by economists to ¥ 1.050B.
The strengthening of the back pressing almost the entire seed stock of Japan this morning, particularly shares of Japanese exporters such as Nissan Motor amounted to 2.82%, shares of Mitsui Chemicals -1.93%, -2.16% stock Chiba Bank, shares of Nissan Chemical Industries -1.89%, shares of Pacific Metals – 4:09%, shares of Hitachi Construction Machinery 1:53%, -2.21% shares of Mitsubishi Electric, Panasonic shares -1.31%, -1.70% stake in Suzuki Motor and Mazda Motor amounted to -1.19%.
The movement of Nikkei index opened this morning slumped 112.30 points, or 0:55%, to 20264.29 points of the position be traded before closing at 20376.59 points and reached the highest position previously traded at 20 428 points and the previous low at 20337.18 points.
But unlike the movement of Nikkei index futures this morning are still opened higher by 80 points or 0:39%, to be 20 335 points from the previous closing position traded at 20 235 points and reached the highest position previously traded at 20 460 points and the lowest was 20 090 points.
Based on the closing traded previously, the analyst estimated that the movement of the Nikkei this morning will still try to penetrate the first support at 20 245 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 20 080 points with MA5 BB10 bottom daily.
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 20 465 points with MA5 under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 20 585 points by the middle MA5 BB10 daily.
Technically, the index likely to weaken on the trading session today, Wednesday (08/07), 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, signaling upside.
It is estimated, the index test the first support level of 20000 and 19940. If it fails at 20055, then the next index is expected to tend to retest the resistance level 20080 and continued until the possibilities are in the 20130 area.
