Market Analysis Wednesday 5th of June

ANALYSIS 05-06-2013

Carried Hang Seng Index Flat Flow Movement

Like the South Korean stock market, the Hong Kong stock market closed flat on Tuesday. Not passionate exchanges triggered by the impact of the lack of fundamental data and simultaneously affect investors prefer to take action to hold the position of weakness that occurs after a row last week.

Technically, the index in the trading session today, Wednesday (05/06) 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 21853 and 21 757. If it fails in 21995, we then estimated the index tends to retest the resistance level of 22115 and continued up to the possibility of being in the 22218 area.

Euro rises, Italian Service Sector Expected Rate Positive Signals

In the forex movement is Wednesday morning the Euro exchange rate generally indicates the movement of the U.S. Dollar was up against after opening at 1,307 in early trading (00:00 GMT). The currency has gained about 11 pips or + around + 0:08% and the news was revealed during rolling was observed in the value 1.3081.

Technically, today’s trading session on Wednesday (05/06), the pair euro dollar likely to move in a positive trend.

A stronger Euro is mainly expected to soon re-test the resistance at 1.3204 minimum and maximum 1.3282. Meanwhile, if the Euro was unable to break and stays below 1.3072 then another alternative scenario the Euro likely to test support at the 1.2962 area and 1.2879.

Gold down by a stronger U.S. dollar, the market is waiting for the FOMC

The price of gold in Tuesday trading ended declining U.S. dollar triggered where the increase will be signaled on the policy of the Federal Reserve’s bond purchase program a major issue.

Technically, gold at today’s trading session on Wednesday (05/06) 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 ​​1376.12 and re-test the maximum level of 1360.58. However, if the price of gold is able to break and hold above 1397.95 then estimated the price of gold could potentially test the Resistance 1417.89 and 1431.98.