Euro Rebound From 3-Month Low Point
The euro rose sharply from three-month lows against the US dollar as the easing of anxiety Greece caused investors reduce speculation bearish on the Euro, while the exchange rate of the Japanese yen rose sharply against the dollar as inflation comments from BoJ governor, Kuroda.
Pairing EURUSD soared 1.1% to a level of 1.0942 at the closing session of Wall Street, after it was touch 3-month lows at 1.0808 levels. Throughout this month EURUSD fell only 1.7%. While against the Yen, USDPY fell -0.3% to a level of 123.84, slipped from a five-week high at 124.48 level.
Yen reversal triggered by BoJ governor’s comments, Kuroda at an event in Bangkok gives a signal that inflation is expected to meet the central bank’s inflation target at 2 per cent, thus running the next phase of quantitative easing stimulus is not needed.
As a result of the strengthening of the Euro and the Japanese Yen, push down the US dollar index, which collapsed -0.75% traded at 98 161 so far.
Technically, today’s trading session on Wednesday (22/07), the pair Euro-dollar likely to move in a positive trend.
The strengthening Euro is mainly expected to immediately re-examine the minimal resistance at 1.1010 and maximum 1.1060. Meanwhile, if the Euro unable to break below 1.0955 and then survive another alternative scenario will be the Euro likely to test support in 1.0910 area and 1.0850.
Gold Down Again
The price of gold is still consolidating near the point of $ 1100 on Tuesday afternoon yesterday, as investors continued to focus on the rise in US interest rates.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell 50 cents or 0.05% and traded at $ 1,106.30 per troy ounce. A day earlier, gold fell $ 25.10, or 2.22% and fell to $ 1,080.00, a level not seen since February 2010, before recovering to close at $ 1,106.80.
Precious metal prices had been under heavy selling pressure in recent weeks amid speculation the Federal Reserve will raise interest rates for the first time in eight years at the beginning of September.
Also on the Comex, silver futures for September delivery edged up 5.7 cents, or 0.39% and traded at $ 14.81 per troy ounce, while copper for September delivery rose 2.7 cents, or 1.1%, to trade at $ 2.509 per pound.
The dollar index which measuring the strength of the greenback against a trade of six other major currencies, settling at 98.17 after hitting a seven-week high is 98.30 previously. The greenback remained in demand amid growing speculation that a rate hike will come in September.
Technically, gold in today’s trading session on Wednesday (22/07) 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 1094.10 and re-test the maximum level of 1088.25. However, if the price of gold is able to break and hold above 1099.50, the estimated price of gold could potentially test the Resistance 1102.20 and 1107.50.
Nikkei Retreat
Japan Tokyo stock market trading Wednesday morning (22/7), opened with the Nikkei index should turn retreat after strengthening Japanese yen overnight. So that the exporter shares also depressed and weakening the movement of the index this morning. The investors seemed to be cautious in looking forward to the release of data Japan All Industry Activity Index on an annual basis in May last.
This morning, the stock exchange Tokyo Japan weighed by Bridgestone shares amounted to -0.71%, followed by Hitachi Construction Machinery shares -1.59%, Sumitomo Heavy Industries -1.18%, -0.90% stake Hitachi, Panasonic shares -1.47%, -1.65 Sony shares %, Mitsubishi Heavy Industries -1.73%, and the shares of Suzuki Motor and Hino Motors shares amounted to -1.38% and 1.74%.
Nikkei index fell Wednesday morning to be opened by 187.52 points, or 0.90%, to 20654.52 points of the position be traded before closing at 20841.97 points and reached the highest position previously traded at 20 845 points and the previous low at 20 715 points.
But unlike the movement of Nikkei index futures this morning, which is still capable of limited opened higher by 35 points or 0:17%, to be 20 645 points from the previous closing position at 20 610 points and reached the highest position previously traded at 20 845 points and the lowest was 20 605 points.
Based on the results of previous closing, the analyst estimated that the movement of the Nikkei index today will try to penetrate the first support at 20 550 points with MA5 on BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 20,450 points by the middle MA5 BB10 daily.
If the movement of the index managed to turn around the direction of rebound, it is expected to try to penetrate the first resistance at 20 670 points with MA5 on BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 20,800 points with MA5 on BB10 daily.
Technically, the index on the trading session today, Wednesday (22/07) likely to weaken, tests 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, signalling upside.
It is estimated, the index test the first support level that is 20 550 and 20 610 20500. If it fails in, then the next index is expected to tend to retest the resistance level 20640 and continued until the possibilities are in the 20700 area.
