Profit-Taking Paint Nikkei
Nikkei slips as continued profit-taking amid easing weaker yen. USDJPY touched 117.75 in early Asian session; looks difficult to continue the momentum weakened after last week scored 118.96 weakest level 7 years.
A weaker yen is one of the pillars so that the index rallied easing attenuation can reduce the incentive for investors to encourage further increase in the index. Nikkei futures down 0.29% and is now trading at 17 375.
Investors also looked worried by the US economic outlook, although the data overnight showed US GDP for the third quarter of 2014 was revised up to 3.9%.
Data overnight which shows the decline in consumer confidence and a slowdown in the US housing price index can be reduced consumption intimated, one of Uncle Sam’s economic driving machine. US consumer confidence index fell from 88.7 to 94.1 into November. Home prices in 20 major US cities just recorded an annual rise of 4.9% in October; slower than previous publications which rose 5.6%.
Technically, the index on the trading session today, Wednesday (26/11) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 17430 and 17480. If it fails at 17 380, then the next index is expected to tend to reexamine the level of support that is 17350 and continued until the possibility of being in the 17300 area.
Sterling Flat Post Testimonial BoE
Sterling tends to move flat on Tuesday following the testimony Governor Mark Carney and the Bank of England policy makers more mixed failed to shift market expectations about the timing of the first hike in interest rates.
Despite testimony in front of the parliament indicate if one of the nine members of the MPC, Kristin Forbes, also began to consider tightening monetary policy, the central bank as a whole is still in vogue “wait and see”.
“The overall conclusion indicates if the BoE still do not know when they will raise interest rates, with Carney and other policy makers continue to make risk in the Euro zone as a reason to delay as long as possible,” said a trader at one of the banks in London. “It’s hard to see much movement Sterling today (Tuesday).”
Technically, today’s trading session on Wednesday (26/11), pound sterling-dollar pair likely to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.5750 and 1.5800 maximum. Meanwhile, if the Pound was unable to break and stays below 1.5714 then another alternative scenario that Pound chance to test support in 1.5700 and 1.5650 area.
Gold held near $ 1.200; Focus On Switzerland Referendum
Gold lingered around the level of $ 1.200 per ounce on Tuesday after US growth data better than expected pushing the dollar exchange rate is only temporary and as markets await instructions from the referendum in Switzerland about the gold reserves of the central bank.
Spot gold traded flat at the level of $ 1.198 per ounce, was close to the 3-week high level reached last Friday after the rate cut by China. Right-wing parties in Switzerland held a vote on 30 November, aims to prevent the Swiss National Bank reduces its gold reserves and require central bank gold reserves as at least 20% of assets, compared with 8% last month.
While opinion polls show that the support of the Swiss people to the idea of fading, the result of ‘yes’ can push up the price of gold in the long run, according to traders.
“The poll results indicate opportunities ‘yes’ very thin … however, if it happens, there may be a short-term reaction to the price of gold, but other central banks will not follow suit, because it is not the central bank’s decision alone,” according to Natixis analyst Bernard Dahdah.
Technically, gold in today’s trading session on Wednesday (26/11) 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 Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1195.33 and re-test the maximum level of 1190.73. However, if the price of gold is able to break and hold above 1198.60, the estimated price of gold could potentially test the 1200.40 and 1205.72 resistance.
