Nikkei Still Under Yen Pressure
Starting the Japanese stock market trading Wednesday morning the first week in June (3/6), the Nikkei index opened with a continued weakening traded previously. The strengthening of the yen put pressure on exporters trading today.
Japanese Yen gain substantial strengthening of the results of the US Factory Orders data release bad in April, so the stock Bridgestone opened slumped 1.96%, shares shrank 1:26% Daikin Industries, Denso shares declined 0.95%, Hitachi shares fell 0.89%, shares of Kawasaki Heavy Industries and Kawasaki Kisen slumped 0.80% and 1:31%.
This morning the Nikkei index movement seems open slumped 100.04 points, or 0:49% that became 20443.15 points from the previous closing position at 20543.19 points and reached the highest position previously traded at 20619.61 and the lowest point at 20470.26 points previously.
Similar to the movement of Nikkei index futures traded on the open this morning shrank 35 points or 0:17% which is 20 430 points from the previous closing position at 20 465 points and reached the highest position previously traded at 20 620 points and the lowest was 20 425 points.
Based on the results of the previous closing, the analyst estimated that today’s Nikkei index movement seems to be trying to penetrate the first support at 20 475 points with MA5 under BB10 daily, as well as when the movement of the index broke through the first support is expected to try to penetrate the support at 20,400 points berikutya BB10 bottom with H4 MA5.
If the movement of the index is able to turn toward stronger, it is expected to try to penetrate the first resistance at 20 641 points by the middle MA5 BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the next resistance at 26.80 points with MA5 on BB10 H4.
Technically, the index likely to weaken on the trading session today, Wednesday (03/06), 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 of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the level of support in advance ie 20400 and 20350. If it fails at 20460, then the next index is expected to tend to retest the resistance level 20480 and continued until the possibilities are in the 20530 area.
Euro Soars Relate Greek Deal
The single currency rose sharply to its highest level in 3 weeks against the pound sterling on Tuesday, as optimism the Greek bailout deal to avoid defaulting loans on international creditors.
Greece’s creditors are nearing completion of a draft agreement with the left-wing government of Athens, adding new momentum protracted negotiations to disburse the bailout. But the head of the Eurogroup Jeroen Dijsselbloem stated that it is theoretically still possible for lenders to provide support if the discussion of economic reforms still cannot be agreed upon, triggering a correction euros from its high level.
The euro also soared versus the dollar after the data reported inflation rose above estimates so break above 1.1010 levels, and triggers automatic orders to limit losses for those who speculate the strengthening Dollar vs Euro.
Technically, the trading session today Wednesday (03/06), the pair Euro-dollar likely to move in a negative trend.
The weakening of the Euro mainly expected soon retests the support at 1.1110 minimum and maximum 1.1050. Meanwhile, if the Euro is able to break and hold above 1.1158, then the other alternative scenario that Euro likely to test resistance in 1.1175 and 1.1225 area.
Gold Prices Still Continue to Increase
The movement of the currency market on Wednesday (3/6), the price of gold was observed traded higher after the release of Australian GDP data this morning, when the market’s attention is still focused on Greek debt talks.
Ongoing trade in the Asian session, gold futures for August delivery was observed traded higher by 0.08% recorded an increase in the level of $ 1.194.60 per troy ounce on the Comex division of the New York Mercantile Exchange. Since this morning, the price of gold has moved touched a session low $ 1.193.10 to $ 1.195.60 level daily and daily highs for the session.
Meanwhile, silver futures for delivery are also trading lower by noting a decrease of 0:07% at the level of $ 16,788 per troy ounce. Silver price movement this morning has been observed to move touched a session low $ 16,748 to $ 16,788 daily and the level of daily highs for the session.
Visible gold futures prices rose in the previous session when the market is still focused on the results of the development of the Greek debt. In respect of Greece’s problems, on Monday the German and French policy officials held a meeting in Berlin.
Meetings are conducted by the leaders of Germany and France is intended to devise a strategy of how to find a way out which can be approved at the final stage of talks with Greece’s debt problems such Athena.
Currently, the deadline Greek debt that must be paid to the Fund amounted to 304 million euros it falls on Friday this week.
Meanwhile, the price of gold has continued its rise this morning due to the recovery of economic growth in Australia so that the pressing demand for the greenback experienced a decline.
Based on the official report released by the Australian Bureau of Statistics said that Australian GDP increased by 0.9% in the first quarter, after rising by 0.5% in the fourth quarter.
Technically, gold in today’s trading session on Wednesday (03/06) 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 1188.25 and re-test the maximum level of 1183.10. However, if the price of gold is able to break and hold above 1193.40, the estimated price of gold could potentially test the Resistance 1195.50 and 1200.25.
