Hangseng Bearish, Focus Shares of China
The Hang Seng Index possibility of consolidation with a bearish bias on Wednesday.
Overall, the index was in the red and green signals about the trend will be confirmed if the index managed to pass through and hold above 22580 area.
The Hang Seng Index is expected to range in area from 20,800 to 22,000.
Target resistance located in the area of 21 625 level, if successfully passed, the next target at 21 860 and the next target in the 22000 area.
Target support level is estimated to be in the area of 21 285 and 21 055, if the index managed to pass through the support then the index likely to extend the correction to the 20800 area.
Technically, the index on the trading session today, Wednesday (26/08) 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 first support level 21230 and 21180. If it fails at 21 280, then the next index is expected to tend to retest the resistance level 21310 and continued until the possibilities are in the area 21 360.
USDJPY Back Weaker in Morning Session
The movement of the currency market on Wednesday (26/8), the US dollar weakened against the yen natural observed when demand for the greenback rose after PBOC arrived – arrived Chinese interest rate cut.
Ongoing trade in the Asian session, the USDJPY fell 0:11% to 118.72 where the pair moves to the session hitting a daily low of 118.62 and 119.48 levels daily highs for the session.
The US dollar looks got a little pressure to weaken against the yen this morning, after experiencing a surge in demand for the greenback increased due to policy measures taken by the PBOC last night.
China’s central bank on Tuesday said it will lower interest rates around 0:25 basis points. After the announcement, most of the global stock markets stabilized and the dollar index, DXY, rose, although the Shanghai Composite SHCOMP still posted a decline of 7.6% lower, a day after falling 8.3%.
Meanwhile, rising US consumer confidence last night has also been boosted demand natural greenback strengthening against some major currencies. Based on the official report released by the Conference Board said that US consumer confidence has risen to a seasonally adjusted 101.5 in August.
Technically, the trading session today, Wednesday (26/08), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 118.50 and 117.10 maximum. Meanwhile, if the Yen is able to break and hold above 119.06, then another alternative scenario the Yen chance to test the resistance at 119.30 and 120.00 area.
China Surprises Dim Gold Fascination
Gold dropped more than 1% on Tuesday after China’s interest rate cuts were shocked global markets helped sentiment recover from the fall of the previous day, with stocks and the US dollar was able to record rally.
Negative pressure on bullion increased after US data showed consumer confidence index hitting a 7-month high in August. The results indicate if the strength of the current economy still allowing the Federal Reserve to raise interest rates this year. Expectations that the Fed has been on track to raise interest rates this year bebeapa had shrunk in recent days, following the release of the policy meeting minutes were dovish July.
Going forward, investors will also monitor the growth in demand for gold at a lower price than India ahead of the Hindu wedding season which will begin from 10 October until mid-March 2016.
Technically, gold in today’s trading session on Wednesday (26/08) 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 1131.25 and re-test the maximum level of 1126.10. However, if the price of gold is able to break and hold above 1136.10, the predicted gold prices could potentially test Resistance ie, 1139.50 and 1145.25.
