Nikkei Ends at Lowest Level 5 Week
Japanese stock market, the Nikkei, weakened again in today’s trading and closed at its lowest level in the last five weeks. Yen rebounded putting pressure on the exchange, negative sentiment was also given Wall Street lower on Monday.
Yen continues to strengthen against the dollar following the increase in demand for safe-haven after China’s manufacturing activity showed a contraction for the first time in seven months. The Chinese data gives fears of an economic slowdown in the world’s second largest, and made the Asian stock markets continued deterioration.
The continued decline in oil prices also put pressure on market movements. The headline Nikkei index closed slipped 2% to 16755.23. While the Nikkei Futures traded at around 16 715 at 13:19 pm with daily highs and lows 16890 16700.
Technically, the index on the trading session today, Wednesday (17/12) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 16 760 and 16 815 16710. If you fail, then the next index is expected to tend to retest the resistance level of 16850 and continued until the possibility of being in the 16900 area.
Carney Comments Saving Sterling
Sterling rose from 3-week lows versus the Euro, amid volatile trading on Tuesday, after the Bank of England Governor Mark Carney did not show concern over the decline in UK inflation to 12-year lows.
UK consumer price index rose 1.0% in November after growing 1.3% in October, reflecting the decline in world oil prices. Carney said that if the inflation data that would help the central bank maintain its policy stance unchanged, while the drop in oil prices would benefit the UK economy.
“The BoE seems to start ready to see some further decline in inflation,” said Daragh Maher, currency analyst at HSBC. “But it might be only a short-term reaction, due to the fact that the BoE is still struggling to cope with inflation expectations are lower than previous expectations.”
Technically, the trading session today, Wednesday (17/12), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5680 and 1.5630 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5730, then the other alternative scenario that Pound chance to test resistance in 1.5750 and 1.5800 area.
Safe-Haven Demand Gold Performance Support
Gold posted a thin reinforcement with increasing demand for safe-haven assets after the volatility of developing countries and the weakening stock market world.
Re-record the weakest ruble against the US dollar despite Russia’s central bank has raised interest rates of 650 bps to 17%. Global stock markets come under pressure as the continued decline in oil prices and widespread anxiety over China’s economy.
However, gold’s rally halted as the outbreak of caution ahead of the publication of the results of the US monetary policy meeting on Thursday morning.
Investors are quite cautious because of the meeting of the Federal Reserve may be able to give you further instructions on how quickly the US central bank will begin to raise interest rates in 2015. XAUUSD now traded $ 1196 after a high level of daily reach $ 1,223 in the London session.
Technically, gold in today’s trading session on Wednesday (17/12) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1191.13 and re-test the maximum level of 1185.00. However, if the price of gold is able to break and hold above 1196.40, the estimated price of gold could potentially test the 1199.40 and 1204.72 resistance.
