KOSPI Down Sharply
South Korea’s KOSPI stock market fell sharply on yesterday.
The KOSPI index closed down 1.89 percent at 1.991.97. As investors remained cautious on Asian equities. Shares of the reinforcement is stock Cocoa jumped to 12.83% before closing up 3.88%, while KT Corp rose sharply 5.2% finally closed up 0.5%.
The stock market in Seoul depressed alongside other markets in Asia affected by the movement of Chinese stocks, the Shanghai index which fell 5.48% on Friday briefly fell to 3.16%.
Technically, the index on the trading session today, Tuesday (12/1) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 248.30 and 249.00. If it fails at 247.85, then the next index is expected to tend to retest the support level 247.50 and continued up to the possibility of being in the 247.00 area.
Dollar Back Solid In Central Euro The Still Pressured Ahead of ECB Decision
Dollar back solid to reach the highest level in almost 13 years against a basket of major currencies on Tuesday, the euro is still moving sluggish by expectations of aggressive policy easing from the European Central Bank.
The dollar index moved the range of 100.20, is near peak levels in March at 100.39. If it is able to penetrate into the top of the level then it will be a level not seen since April 2003.
Index end November with gains of 3.4%, this is the second largest monthly gain this year.
Against the yen, the greenback rose above 123.00 for the first time in a week, but still below the three-month highs achieved in November at 123.77.
The ECB is expected to add further stimulus at their meeting on Thursday. By contrast, the Federal Reserve has strong indication to Raise US interest rates this month. Traders said that only the poor US payrolls report on Friday that could reverse the trend.
In this case, the policy differences between the two central banks has caused the euro fell by about 4% in November, this is the worst in eight months. The euro is currently engaged in the range of $ 1.0575, near its lowest level 7 1/2 months at 1.0557 reached overnight.
Technically, today’s trading session on Tuesday (1/12), the Euro-dollar pair has an opportunity to move in a positive trend.
The strengthening Euro is mainly expected to immediately re-examine the minimal resistance at 1.0640 and maximum 1.0700. Meanwhile, if the Euro unable to break and stays below 1.0593 then the other alternative scenario that Euro likely to test support in 1.0560 area and 1.0510.
Gold Prices Rise, Still Potentially Depressed US Rate Hike
The price of gold at the close of trading on Tuesday before dawn (1.12) closed up, but still remains close to its lowest level in nearly six years and was on track for its sharpest monthly decline in 2.5 years on the prospect of higher US interest rates this year.
LLG Spot gold prices rose 0.6 percent at 1,064.06 dollars per troy ounce, just above the drop in Friday at 1,052.46 dollars per troy ounce, the lowest since February 2010.
The dollar was at its highest level of 8.5 months against a basket of major currencies, making gold more expensive for holders of other currencies, this is usually the source of the gold price pressure.
The price of gold has experienced a reduction of almost 7 percent in November, the biggest monthly decline since June 2013, as investors remained focused on interest rate hike imminent in the United States.
The US Federal Reserve’s next policy meeting on December 15 to 16.
US payrolls report on Friday will be more closely watched than usual. A strong result, after a surge in job growth in October, could be the expectation that the Fed will first increase in nearly a decade.
European Central Bank policy meeting on Thursday will also be watching for any impact on the currency market. The ECB is widely expected to ease policy.
Meanwhile, the price of Platinum has dropped 16 percent in November and declined 1.6 percent to the lowest level in seven years at $ 820.60 per ounce on Monday. Silver prices rose 0.2 percent at $ 14.07 per ounce, but experienced a monthly decline of 9.5 percent. Meanwhile, palladium prices have dropped 19 percent for the month, while the trading session yesterday, down 1.1 percent at $ 541.75 per ounce.
Technically, gold on the trading session today, Tuesday (01/12) the potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1077.10 and re-test the maximum level of 1082.87. But if the gold price could not break and stays below 1072.40 then predicted gold prices could potentially test the Support 1070.78 and 1065.40.
