Gold Rebound, But Decline 2-week Streak
The weakening US dollar after the employment data (Non Farm Payrolls) help strengthen gold, but investors remained cautious before the Greek referendum related to the bailout deal. Trading volume was thin with US markets closed welcomed this independence day.
Gold has been under pressure this year from time of uncertainty in US interest rate hikes. The increase in interest rates may down the valuation Greenback and vice versa lowers the demand for gold is not giving flowers.
Gold also fell in the second week as the strengthening of the dollar against the Euro when negotiating Greece’s debt crisis turned deteriorated. Complications Greek debt negotiations that make financial markets volatile, fail triggering a sharp demand on gold which is usually regarded as a safe haven asset. Risk aversion sentiment associated Greek developments are likely to benefit safe-haven currencies like the Japanese Yen and the Swiss Franc.
The gold price ended at the level of $ 1168.50 per troy ounce, with daily highs $ 1,170.16 and $ 1,164.66 daily lows.
Technically, gold in today’s trading session on Monday (06/07) 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 1164.50 and re-test the maximum level of 1159.25. However, if the price of gold is able to break and hold above 1169.40, the estimated price of gold could potentially test the Resistance 1171.50 and 1176.10.
Greek Referendum Results Uprooting Kospi
South Korean stock market trading Monday morning the first week of July (6/7), opened with the Kospi index is trading weaker resume the previous weekend, which is due by damkpak of the results of the Greek referendum.
This morning, it appears the movement of Asian stock markets also influenced the results of the Greek referendum, where as much as 61% reject the austerity package proposed by international creditors. Tamkpak investor fears that Greece will be the latest developments made Hyundai Motor should be opened plunge 2:22%, shares KIA MOTORS -1.79%, -1.03% shares of Samsung Electronics, LG Electronics -1.99%.
Kospi Index slumped this morning to be opened 28.35 points, or 1:31%, by becoming 2076.06 points from the previous closing position at 2104.41 points and achieved the highest position previously traded at 2109.68 and the lowest point at 2094.02 points previously.
Likewise, the movement of Kospi index futures this morning, which opened plunge 3:23 or 1:26% points, to be 251.43 points from the previous closing position at 254.66 points and reached the highest position previously traded at 255.62 points and the previous low at 253.56 points.
Based on the closing of trading on the previous week, the analyst estimated that today’s Kospi index movement still will penetrate the first support at 254.95 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 253.75 points with MA5 BB10 bottom daily.
If the movement of the index managed to turn higher, it is expected to try to penetrate the first resistance at 255.55 points by the middle MA5 BB10 H4, if the movement of the index broke through the first resistance then would penetrate resistace second on 256.70 points with MA5 on BB10 H4.
Technically, the index likely to weaken on the trading session today, Monday (06/07), 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 first support level 251.20 and 250.25. If it fails at 251.90, then the next index is expected to tend to retest the 252.25 resistance level and continued up to the possibility of being in the 252.80 area.
Moving Yen Gains Against Dollar
The currency earlier this week moved higher against the US dollar on Monday (6/7). Supported by the US treasury lower as government bonds benefited.
USDJPY fell -0.02% to 122.30. In addition, as risk aversion amid fears Greece could cause the country roots of western philosophy will come out of the Euro zone.
However, actually the fate of Greece is also dependent on the ECB. European time today, the Board of Governors ECB will hold a teleconference on whether they will help Greek banks is running out of liquidity or not.
Technically, today’s trading session on Monday (06/07), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately retest the resistance at 122.90 minimum and maximum 123.60. Meanwhile, if the Yen could not break below 122.52 and then survive another alternative scenario will be the Yen likely to test support in 122.20 and 121.50 area.
