Stop Gold Rally Three Sessions streak
Gold futures rally to stop a third straight session on Thursday as the easing of demand for safe-haven behind the recovery in the US stock market.
Technically, gold at today’s trading session on Friday (17/10) potentially bearish, tested negative trend back, but prone to reversal. The RSI indicator is likely to re-test support channel and towards the oversold area, but the Bollinger Bands which began to widen, thus giving impetus to gold to the upside.
It is estimated that the price of gold immediately prior to test support at least in the area of 1230.90 and re-test the maximum level of 1225.50. However, if the price of gold is able to break and hold above 1237.10 then estimated the price of gold has the potential to test the 1240.10 and 1235.50 Resistance.
Nikkei Drops in Late Trade on Thursday
Japanese shares fell sharply in late trading Thursday. Stock markets tumbled and bring the Nikkei closed at its lowest in closing 4.5 months later. The strengthening of the yen against the dollar makes shares of exporters experiencing selling pressure demonizing the benchmark index.
Technically, the index in the trading session today, Friday (17/10) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test the level of support in advance ie 14 670 and 14 720 14620. If you fail, then the next index is expected to tend to retest the resistance level of 14750 and followed up the possibility of being in the 14800 area.
Sterling Stuck Near Lowest Level 11 Months
Pound sterling is still moving flat and stuck near 11-month lows against the dollar to trade the Asian session Thursday. Sterling in yesterday’s trading had gained due to poor US economic data, although economic data from the UK released varied. GBPUSD is currently trading around 1.5992 with daily highs and lows 1.6025 1.5939.
Technically, today’s trading session on Friday (17/10), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.6130 and 1.6180 maximum. Meanwhile, if the pound sterling was unable to break and stays below 1.6080 then another alternative scenario that is likely to test support the pound sterling in the area 1.6050 and 1.6000.
