Market Analysis Friday 7th of June

Closed Hang Seng Index Decreased, Lowest Since 18 April

Hong Kong stocks closed lower Thursday. The fall in market movements caused by the presence of a stock sell-off by investors amid worries over the U.S. economy where the economic stimulus policies to cost around 85 billion dollars are expected to be delayed until the end of this year.

Technically, the index in the trading session today, Friday (07/06) 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 21390 and 21273. If it fails in 21570, we then estimated the index tends to retest the resistance level of 21724 and continued up to the possibility of being in the 21842 area.

Yen Gains Ahead of Japan’s Cabinet Office Report

Japanese Yen on Friday morning it seems to strengthen against the Euro. USDJPY pair opened at 129.58 in early trading (00:00 GMT) and down around -62 pips or about -0.47%, indicating a strong yen against the euro. Scrolling value pair EURJPY looks to be in the range of 128.96.

Technically, the trading session today, Thursday (30/06), the dollar yen pair has a chance to move in a negative trend.

Weakening Yen primarily expected soon reexamine the minimum support at 95.25 and 93.95 maximum. Meanwhile, if the Yen is able to break and hold above 97.43, then another alternative scenario the chance to test Resistance Yen’s in the area of ​​99.22 and 100.56.

Gold Gains Ahead of Payrolls

Gold rose around 1% on Thursday, as the dollar fell sharply and concerns on the stock market oversold so encouraging investors to add positions to the precious metal ahead of the important non-farm payrolls on Friday.

Technically, gold at today’s trading session, Friday (07/06) potential reversal, tested positive trend, but prone to profit taking. Indicator RSI resistance likely to re-test the bullish channel and into the area, but the Bollinger Bands are starting to shrink, thus giving impetus to gold to the downside.

Estimated gold price immediately prior to test resistance at least in the area of ​​1438.78 and re-test the maximum level of 1452.86. However, if the gold price could not break and stays below 1415.25 then estimated the price of gold has the potential to test Support the 1397.98 and 1384.38.