Gold Falls 0.6% As Bernanke Statements Lift Dollar - Market Analysis Thursday 20th of June

Closed Hang Seng index plummeted 1.13%

Hong Kong shares to trading on Wednesday closed at significantly weakened position after the last two days and posted a successful market position raised above 21,000 basis points.

Technically, the index in the trading session today, Thursday (20/06) 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 20470 and 20201. If it fails at 20 935, then the next index is expected to tend to retest the resistance level of 21224 and continued up to the possibility of being in the 21476 area.

Pulse Global Forex: Yen Down and USD Weakens

In trading Wednesday the Japanese yen appears to be still trying to continue its decline against the U.S. dollar. The yen declined amid speculation that Wednesday Governor Ben Bernanke Fed will provide more information about when the U.S. central bank will begin to reduce the amount of government bond buying program.

Technically, today’s trading session on Thursday (20/06), the dollar yen pair has a chance to move in a positive trend.

A stronger yen primarily expected soon reexamine the minimal resistance at 99.24 and 101.28 maximum. Meanwhile, if the Yen was able to break and stays below 96.43 then another alternative scenario that is likely to test support Yen’s in the area of ​​94.31 and 92.68.

 

Gold Falls 0.6% As Bernanke Statements Lift Dollar

Gold futures extend fall in electronic trading as the U.S. dollar strengthened after Federal Reserve Chairman Ben Bernanke told reporters that the central bank could begin to scale back purchases of government bonds earlier this year if needed with stronger economic data.

Technically, gold at today’s trading session on Thursday (20/06) 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 ​​1316.85 and re-test the maximum level of 1297.10. However, if the price of gold is able to break and hold above 1346.05 then estimated the price of gold could potentially test the Resistance 1369.11 and 1386.95.

Jalatama Loco London (XULF) Report 12/06/2013

XULF Report
Gold got wrapped up in the broad scale sell-off yesterday triggered by the Bank of Japan unveiling no additional stimulus measures and concerns about the legality of the ECB’s OMT programme. The precious metal has been well known as a good hedge against inflation and currency devaluations hence a withdrawal of money supply tends to cause investors to move away and go back to currencies. If the German Court Ruling over the constitutionality of the ECB’s unlimited bond purchases pledge is concluded as illegal then this could unravel all of Mario Draghi’s resolute hard work to lower bond yields of highly indebted nations.

The ECB hasn’t needed to activate the bond buying of its Outright Monetary Transactions programme but the pledge to make unlimited purchases has instilled confidence in the Euro which could be eradicated if the pledge isn’t supported by law. This will weaken EUR/USD and put heavy pressure on gold. Conversely a success for the ECB should give investors more appetite for gold. The poor Chinese trade data at the weekend is also dampening the mood for gold after further evidence points to slowing growth from the metals second largest importer.

The 15 minute chart displays how price has recouped much of yesterday’s losses to find resistance at the bearish trendline that began forming on Monday. Given the general descent since Friday this pullback towards this bearish trend offers a good opportunity to short with a tight stop. Remember that the weekly chart strongly indicates with the two side-by-side shooting stars that the market will finish the week down therefore most factors are bearish in the short term. A break of this trendline may produce an incline of a few dollars but bear in mind we need fundamentals somewhat to deliver gains of any substance. If the ECB wins its court case that may be the impetus gold needs.

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.

Jalatama Loco London (XULF) Report 06/06/2013

XULF Report

Disappointing numbers from the ADP and Non-Manufacturing reports has so far produced an uninspiring set of data from the US this week. The private sector job creation is at a modest pace feeling the effects of government spending cuts which is causing extra anxiety ahead of the US Department of Labour jobs report this Friday. There are a lot of concerns at the moment and this is manifested in the pullback in equities at present. Without strong US data to offset the pessimism surrounding the Eurozone’s recession, China’s slowdown and scepticism over Japanese Prime Shinzo Abe’s growth plans we could a significant equity correction. The question of how gold will perform during an equity correction is subject to whether that correction occurs because of poor US economic data or because the stimulus tapering is going to happen sooner than anticipated. The former would be better for gold.

The uncertainty in the markets at the moment is nicely illustrated on the 4 hour chart. The bullish medium term trendline is still intact, although it has been fighting off a few attacks from the bears of late, but combined with the blue descending trendline we have a symmetrical triangle emanating the wait-and-see mode of the market ahead on Friday’s Non-Farms. Trade any breakout very cautiously before the Non-Farms as we could see a false breakout. Also be aware there will be considerable volatility when ECB President Mario Draghi speaks at a press conference at 20:30 tonight as investors listen for clues as to what is the next move for the ECB amid a dire Eurozone. Unless Draghi gives an aggressive and determined stance towards supporting the Euro traders are likely to short the Euro which will push gold lower. If we get a downside break $1388, $1384 and $1373 are the short term targets as these are levels buyer interest will increase. A break to the upside target $1410, $1417 and $1421.

Market Analysis Thursday 6th of June

ANALYSIS 06-06-2013

Kospi Index Follow Asian Stocks Slump More

Decline in South Korean market movements to trading on Wednesday re-occur. Negative trend continued as the existence of a market concern on the condition of the Japanese economy and China is expected to experience an economic slowdown at the end of this year. The governments of both countries have even suggested that the country’s economic growth will still be difficult. For Japan, the condition will still looming deflation in the short term.

Technically, the index in the trading session today, Thursday (06/06) 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 254.35 and 252.75. If it fails at 256.55, then the next index is expected to tend to retest the 258.42 resistance level and continue up the possibility of being in the 260.07 area.

Today’s pulse Global Forex: Euro zone Improved

Japanese Prime Minister Abe will launch three darts critical for economic growth for the whole Abenomics.

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

A stronger Euro is mainly expected to soon re-test the resistance at 1.3191 minimum and maximum 1.3269. Meanwhile, if the Euro was unable to break and stays below 1.3077 then another alternative scenario the Euro likely to test support at the 1.2981 area and 1.2900.

Gold Gains As Investors Trim Cautious Ahead of ECB Meeting

Gold futures rose on Wednesday, with disappointing growth in private sector employment report large losses on equities and also provide support, but the price of gold substantially reducing their reinforcement ahead of the closing session.

Technically, gold in the trading session today, Thursday (06/06) 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 ​​1421.29 and re-test the maximum level of 1433.92. However, if the gold price could not break and stays below 1399.40 then estimated the price of gold has the potential to test Support the 1380.98 and 1365.92.