Gold closed down more than 6% - Market Analysis Friday 21th of June

The Hang Seng Index Drops Nearly 3%

Hong Kong shares to trade on Thursday closed yesterday experienced a sharp decline. Exchanges are still declining and continue the negative trend due to pressure from fundamentals which investors prefer to sell stocks after the Fed’s decision last night that will reduce the nominal U.S. economic stimulus package.

Technically, the index in the trading session today, Friday (21/06) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.

Expected, the index tested the first support level ie 19803 and 19505. If it fails in 20285, we then estimated the index tends to retest the resistance level of 20 599 and continued until the area is likely to be 20 927.

EUR / USD: Euro Weakens, Support 1.3190

In trading Thursday, the opening price of EUR / USD at 1.3293. The movement of this currency pair natural corrective decline, at the start strengthening to a peak of 1.3299 and then pulled back up to ground level after passing support 1.3158 1.3174 (low, June 10).

Technically, the trading session today, Friday (21/06), the pair euro dollar likely to move in a negative trend.

The weakening Euro is mainly expected to immediately reexamine the minimum support at 1.3002 and 1.2872 maximum. Meanwhile, if the euro is able to break and hold above 1.3214, then another alternative scenario the chance to test Euro Resistance at 1.3359 and 1.3472 area.

Fed Signals From Ruin tapering Gold Prices

Gold closed down more than 6% after the price dropped to a low level in more than 2-1/2 years on Thursday, with investors sold gold after the Federal Reserve signaled plans to end the era of easing.

Technically, gold at today’s trading session on Friday (21/06) potentially bearish, test returned negative trend, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band which began to widen, thus giving impetus to gold to the upside.

Estimated gold price immediately prior to test support at least in the area of ​​1224.33 and re-test the maximum level of 1187.98. However, if the price of gold is able to break and hold above 1274.05 then estimated the price of gold could potentially test the Resistance 1316.42 and 1355.19.