Kospi Highest Level 3 Months
South Korean stock market fell away from 3-month highs in trading Monday, weighed weakening of leading shares. While the US stock market has not inspired movements varied Asian markets after the end of trading on Monday.
As usual, players in the US market was cautious ahead of the Federal Reserve’s monetary meeting this week, a written statement from the central bank would be a concern of investors because of likely interest rates will not be raised at the meeting this time.
While market participants in Asia today waiting for China’s industrial profit data in September, market participants with monetary easing by the central bank.
Shares in Samsung Electronics fell 0.4%, Hyundai Motor fell 0.6%, while Posco fell 2%.
Technically, the index on the trading session today, Tuesday (27/10) likely to weaken, 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 tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first support level 250.25 and 249.50. If it fails at 250.95, then the next index is expected to tend to retest the 251.25 resistance level and continued up to the possibility of being in the 251.75 area.
GBP / USD: Pound Sterling Soar
In trading on Monday, open price GBP / USD at 1.5315. The movement of this currency pair experienced a reversal to the upside, started weakening to a low level at 1.5312 and then rebounded to 1.5384 high level. Close price at 1.5353, marked by bearish pattern.
According to analysts from Dow Jones Futures Asta, in the Asian session this morning the movement of GBP / USD has the potential to rise to the level of 1.5427 and the farthest 1.5451 – 1.5497. If a decline in the range and potentially reaching the 1.5243 level, then it will furthest 1.5203 - 1.5167. Expansion of resistance to 1.5531, 1.5555, 1.5572, 1.5608 and extension support to 1.5131, 1.5110, 1.5090, 1.5056.
Furthermore, today the market focused on the UK economic calendar Prelim GDP q / q [16.30] and the US Core Durable Goods Orders m / m [19.30], CB Consumer Confidence [21.00] will be released today.
Technically, today’s trading session on Tuesday (27/10), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling mainly expected soon reexamine the minimal resistance at 1.5410 and maximum 1.5460. Meanwhile, if the pound sterling was able to break and stays below 1.5352 then another alternative scenario, ie the pound sterling likely to test support in 1.5325 area and 1.5275.
Gold Maintain Weakening
The price of gold sustain a four-day decline as investors awaited the Federal Reserve’s decision this week and assess the impact of the global economic slowdown amid easing of monetary policy in China and Europe.
Gold is currently moving the range of $ 1,163.50 / onz of $ 1,163.04 on Monday. The precious metal has fallen by 1.1% in the past four days, it was the longest consecutive daily loss since Oct. 1.
Traders are currently awaiting the Fed to see when interest rates will start to be increased for the first time since 2006. At the time the US central bankers consider growth, inflation and labor market data to decide whether to tighten or not, the outlook for China’s economy – and that means also for the United States and around the world-are expected to be prominent in the discussion of the future of the US Federal Reserve meeting for two days starting on Tuesday. China’s central bank cut interest rates last week to boost growth, while the European Central Bank president Mario Draghi informed that he will increase stimulus measures.
One analyst at Huatai Great Wall Futures Co. in a note to clients saying that while US economic growth is stronger, then the impact of the current global growth is envisaged in the Fed’s decision. We still do not rule out the existence of a surprise for a rate hike in October.
Futures traders assess only 6% chance that the Fed will Raise interest rates at a meeting this week. However, investors will digest the Fed’s statement for any signs of policy shifts delay.
Technically, gold in today’s trading session Tuesday (27/10) 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 1158.33 and re-test the maximum level of 1153.73. However, if the price of gold is able to break and hold above 1163.90, the predicted gold prices could potentially test Resistance ie, 1165.40 and 1170.72.
