Nikkei Weakens And Lead In Asia
Stocks Japan leads Asian stocks weakened on the trading session Friday, and the yen strengthened, adding momentum to the global selloff after the European Central Bank explosion smaller than expected as monetary stimulus package that turned out to be disappointing investors.
NIK Nikkei 225 Stock Average fell 2.2%, with the losses experienced by the company’s leading exporters, as the yen strengthened against the US dollar. Japanese Yen USDJPY rose during the trading session today by 0.1% to ¥ 122.58 level against the dollar. Elsewhere, Australia’s S & P / ASX 200 fell 1.4%, South Korea’s Kospi SEU slipped 1% and Hong Kong’s Hang Seng Index HSI down 1.1%.
SHCOMP Shanghai Composite Index fell 2%. Chinese officials last month announced the relaunch of its initial public offering several companies listed on the stock after the suspension in July.
Technically, the index on the trading session today, Monday (12/07) likely to weaken, 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 tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the level of support in advance ie 19 690 and 19625. If it fails in 19750 the next index is expected to tend to retest the resistance level that is 19 780 and continued until the possibilities are in the area 19 830.
Stalled Dollar Rally Induced Post Yang Disappointing NFP Data
The US dollar edged higher against the euro on Friday despite the monthly US employment data were higher than expected, as the market continued to digest a surprising little stimulus from the European Central Bank on Thursday.
Non-farm payrolls increased 211 000 last month, according to data from the Labor Department on Friday. Data in September and October were revised upward as much as 35,000 from a previously reported. Meanwhile, according to analysts, the data are not strong enough to confirm the rise in US interest rates by the Federal Reserve this month, and failed to trigger a dollar rally against the euro given the ECB’s decision.
One of the strategic commented on thin strengthening dollar against the euro, that market disappointment limit the market response today. Investors reduced short positions against the euro on Thursday after ECB move which cut interest rates by 10 basis points deposit and prolong asset purchases for 6 months assessed disappointed the market. ECB Decision cushion the impact of the data, according to one market participants.
Technically, the trading session today, Monday (7/12), the Euro-dollar pair has an opportunity to move in a negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0910 and maximum 1.0850. Meanwhile, if the Euro is able to break and hold above 1.0872, then another alternative scenario the Euro a chance to test the resistance at 1.0900 and 1.0950 area.
Gold Gains However Potential Decline Today
Gold ended the last week with a strong record, ending a decline for six weeks and humility for 5 ½ years.
Gold rally began on Friday after the release of nonfarm payrolls report in November, which is relatively in line with expectations. The data show that 211,000 jobs were created in November with previous estimates of about 200,000. At the same time, the labor market report in October was revised up to 298,000 jobs.
February Comex gold futures ended the session on Friday with an increase of almost 2% on the day and 2.6% for the week, in settled at $ 1,084.10 per ounce.
Gold rally also managed to support the other precious metals, with silver prices ended the week at $ 14,528 per ounce, an increase of 3.6%.
According to the weekly Kitco Gold Survey of Wall Street vs. Main Street, optimism is high that the resurrection of humility over the years is the beginning of a new upward momentum.
Of the 36 market experts (consisting of bullion dealers, investment banks, futures traders and technical chart analysts) were contacted, 19 responded, of which 11 or 58% said they expect gold prices to rise higher in the next week. While 5 analysts, or 26% expect prices dropped lower, and 3 people or 16% neutral.
Technically, gold in today’s trading session on Monday (12/07) 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 1078.10 and re-test the maximum level of 1073.25. However, if the price of gold is able to break and hold above 1083.70, the predicted gold prices could potentially test Resistance ie, 1085.40 and 1090.72.
