Market Analysis of Wednesday 20 March 2013

ANALYSIS 20-03-2013

Nikkei “Revolting”, Soar 2%

Japanese shares to trading closed Monday recorded increases. Amid concerns about the banking sector following the postponement Cypriot voting again on the country’s deposits of tax policy, the weakening of the yen against the dollar became lifter factor strengthening the Japanese stock market as shares of exporters.

Technically, the index on the trading session today, Wednesday (20/03) likely strengthen, test positive trend. In M15 chart formidable bullish hammer provides an opportunity for the index to move upside. However, the volume is likely to increase, as well as an early indication of bullish index. In addition, RSI, on the M15 chart, is in oversold area, cue upside.

It is estimated, the index tested the first resistance level of 11 996 and 12 018. If it fails at 11 965, we then estimated the index tends to re-examine the level of Support and continue until the 11 940 in the area is likely to be 11 916.

                               

Sterling prop up UK inflation data

Sterling moved away from daily lows against the U.S. dollar after the data showed UK inflation in February advanced to nine-month highs. Consumer price inflation grew 2.8% at an annual pace after hold steady at 2.7% since last October, according to the Office for National Statistics.

Technically, today’s trading session on Wednesday (20/03), the pair euro dollar likely to move in a positive trend.

The strengthening of the Euro is mainly expected to immediately re-examine the minimum resistance at 1.5177 and 1.5234 maximum. Meanwhile, if the Euro was unable to break and hold below 1.5103 then another alternative scenario the Euro likely to test the existing Support 1.5044 and 1.4996 area.

                              

Consolidated Gold, U.S. Dollar Strengthening Impact

Trading gold for Tuesday activities decreased due to the strengthening of the dollar movements in global financial markets. One dollar increment is also caused by the impact of the weakening euro after the currency of the European Union is depressed due to market concerns financial crisis in Cyprus.

Technically, gold trading session today, Wednesday (20/03) potential reversal, tested positive trend, but prone to profit taking. RSI indicator tends to re-test resistance 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 ​​1620.74 and re-test the maximum level of 1625.97. However, if the gold price could not break and stays below 1612.10 then predicted the gold price could potentially test the 1605.43 and 1600.20 Support.