Geo-Political Risk Weight the Nikkei
Nikkei down after the shooting of the Canadian Parliament made investors anxious to return geo-political risk world. A gunman attacked the parliament of Canada and the sound of gunfire was also heard near the room, which was attended by Prime Minister Harper. Parliament security forces finally succeeded in killing the man, but the security officer killed in the shootout at the parliament building. Nikkei futures were down 0.49% and is now trading at 15100 levels.
Technically, the index in the trading session today, Thursday (23/10) 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 15 050 and 15000. If it fails in 15105, we then estimated the index tends to retest the resistance level of 15 150 and is likely to be continued until the 15200 area.
BoE Meeting Minutes Disappointing Sterling
Sterling fell against the US dollar after the Bank of England meeting minutes earlier this month showed the majority of policy makers explicitly refused to raise interest rates. Although two members calling for a rate hike of 25 basis points, seven other MPC members assess signs of inflationary pressure is minimal.
Technically, the trading session today, Thursday (23/10), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.6000 and 1.5950 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.6039, then another alternative scenario that is likely to test resistance Pounds in 1.6050 and 1.6100 area.
Gold Futures Decline Closed
Trading commodity exchanges in the precious metals Wednesday ended lower as inflation data have provided reinforcement for the US dollar last night.
Technically, gold at today’s trading session on Thursday (23/10) 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 1235.33 and re-test the maximum level of 1230.73. However, if the price of gold is able to break and hold above 1241.60 then estimated the price of gold has the potential to test the 1245.00 and 1250.50 Resistance.
