Strengthening Dollar Distressed Gold
The gold market started the week with weakening as the strengthening of the dollar and investors monitor economic indicators for clues when US interest rates rise. The gold market has not found the urge reinforcement after posting the biggest decline in two years in July.
US consumers remain confident spend its revenues in June due to increased revenue. This data indicates that the labor market is assumed to maintain the gains that can persuade the central bank to more quickly raise interest rates from record lows. Rising interest rates and the strengthening of the dollar is a negative for gold which does not provide interest and traded in US Dollars.
In addition, Goldman Sachs Group said in a report released Monday, returned to repeat its forecast gold prices may touch the area that is lower than the $ 1,000 per troy ounce. This week, Nonfarm Payrolls important data released on Friday (7/8) will be waiting for clues investor to obtain a US interest rate hike the first time in nearly a decade.
The gold price ended at the level of $ 1086.50 per troy ounce, with daily highs $ 1,097.67 and $ 1,085.72 daily lows.
Technically, gold in today’s trading session Tuesday (04/08) 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 1078.25 and re-test the maximum level of 1072.50. However, if the price of gold is able to break and hold above 1083.10, the estimated price of gold could potentially test the Resistance 1085.10 and 1090.25.
Nikkei Higher Position
Nikkei spot index in early trading the stock exchange Tokyo Japan on Tuesday morning (4/8) reopened with a continuing pressure by the previous trading sentiment strengthening of the Japanese Yen. But for natural index gains were limited.
Yen movements that managed to gain momentum gains against the US dollar overnight so back burdensome shares of exporters such as Honda Motor -1.12%, shares of Mitsubishi Logistic -0.50%, -0.71% Bridgestone shares, shares of Hitachi Construction Machinery -1.83%, Hitachi shares -0.92%, -0.98% Toshiba shares, shares of Isuzu Motors and Toyota Motor shares amounted to -1.28%, and -1.34%.
Nikkei benchmark index opened this morning observed a strong pressure of 95.51 points or 0:46%, to 20452.60 points of the position be traded before closing at 20548.11 points position and managed to reach the highest position previously traded at 20562.20 points and the lowest position before the 20396.50 points.
But unlike the movement of Nikkei index futures this morning, which successfully opened higher by 20 points or confined 0:10%, to be 20 445 points from the previous closing position traded at 20 425 points and reached the highest position previously traded at 20 560 points and the lowest position before at 20,385 points.
Based on the closing traded previously, the analyst estimated that the movement of the Nikkei index today will try to rise up to the first break through resistance at 20 680 points by the middle MA5 BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 20 945 points with MA5 middle BB10 daily.
If the movement of the index managed to reverse direction and continue weakening traded previously, it is expected to try to penetrate the first support at 20,400 points with MA5 under BB10 H4, if the movement of the index broke through the first support is expected to try to penetrate the second support at 20 210 points with MA5 under BB10 H4.
Technically, the index on the trading session today, Tuesday (01/08) likely to weaken, tests 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 level of support in advance ie 20450 and 20400. If it fails at 20510, then the next index is expected to tend to retest the resistance level 20540 and continued until the possibilities are in the 20600 area.
Stronger Yen Against Dollars
Yen volatility to move in flats tends to strengthen against the US dollar on Tuesday (4/8). Triggered from investors await payroll data at the weekend.
USDJPY fell -0.07% to 123.95. Apart from that, investors also focused on Australia’s retail sales data will be reported next few hours, plus there is also a meeting of the RBA’s trade balance amid falling oil prices.
Last night, the dollar also weakened after manufacturing data expanded at a slower rate than expected in July, fueling speculation that the Federal Reserve may delay raising interest rates. The Institute for Supply Management reported that the PMI index fell to 52.7 last month from 53.5 in June. Analysts had expected the manufacturing PMI at the level of 53.5 in July.
Technically, today’s trading session on Tuesday (04/08, dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately retest the resistance at 124.60 minimum and maximum 125.25. Meanwhile, if the Yen could not break below 124.05 and then survive another alternative scenario will be the Yen likely to test support in 123.80 and 123.25 area.
