Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Commodities

| More

'Gold exposed to further pressures' - ForexTime.com

Posted On: 2015-09-29 19:47:34

Lukman Otunuga - Research Analyst, ForexTime.com

Global Market

Anxiety continues to ripple through the financial markets as global developments concerning the lack of clarity on the timing of a US interest rate hike, anxieties over China entering a deep economic downturn, emerging market weakness and continual growth concerns in Europe, Japan and Asia are all weighing on global sentiment.

A risk-off trading environment which has been the product of market instability continues to punish the value of the Sterling which could still be exposed to further pressures against its trading partners. There has also been negative PMI data from the UK economy this month, and these factors are pushing back UK interest rate expectations with this also contributing to the GBP pressure. The GBPUSD has traded to four and a half month lows and remains technically bearish on the daily timeframe. With prices currently residing below the daily 200 and 20 daily SMA, a breach below the 1.5150 support may open a path to the next relevant support at 1.5000.

In the commodity division, Gold has experienced a sharp change of direction and fallen to the downside as a result of positive comments from members of the Federal Reserve that US interest rates can still be raised in 2015. The precious metal which hit a one-month high last week, has given back those gains and more with prices trading around the 1124.0 level as of writing. With market instability and investor anxiety creating erratic moves within Gold, more direction for the metal may be provided once market participants digest the key data releases regarding the developments in Asia, Europe and the America this week.

Some stability can be seen within WTI with support at $44.00 holding since the start of September. A recent drop in US oil inventories inspired some bullish momentum within WTI, but prices have still declined back to the gravitational $44.00 regions. The next major catalyst which may promote a further decline in WTI might be soft economic data from China signalling a decline in demand. Technically WTI remains bearish on the daily timeframe with the next relevant support based at $42.00.

Equities as of whole have taken a hit as a result of the weakened global sentiment. In the European equity division, the FTSE100 has really caught my attention. Mining stocks have plummeted following another weak PMI from China last week, which has resulted in the FTSE100 encountering an aggressive sell-off. Prices have breached the psychological 6000 support with this index remaining technical bearish on the daily timeframe. Any additional pressures received from weak China data this week or even selling in the commodity markets as a whole may result in a further decline to the next relevant support at 5850 on the FTSE100.

EURJPY

The EURJPY remains technical bearish on the daily timeframe as long as prices can keep below the 135.50 resistance. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. The next relevant support is based at 133.00.

GBPCHF

The GBPCHF is technically bearish on the daily timeframe. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. As long as prices can keep below the 1.5000 resistance, there may be a decline to the next relevant support at 1.4650.

CADJPY

The CADJPY experienced a breakdown below the 89.50 support. As long as prices can keep below the 93.00 resistance, there may be a decline to the next relevant support at 88.00

GBPJPY

The GBJPY remains bearish on the daily timeframe as long as the 184.50 resistance holds. Lagging indicators such as the MACD point to the downside and the candlesticks reside below the daily 20 SMA. The next relevant support is based at 180.50.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Comfortable supplies in oil markets - will oil prices rally further? Angel Commodities Broking
Nickel rallies to the top: Angel Commodities Broking
Oil prices to correct, WTI headed towards $62: Angel Commodities Broking
Guar to trade higher in coming weeks: Angel Commodities Broking
MCX Aluminium hits record high on supply woes: Angel Commodities Broking
Cotton positive on export demand, reduce acreage: Angel Commodities Broking
Trump's hard line protectionism stance draws ire: Angel Commodities Broking
Robust imports, Steel curb extension boost metals: Angel Commodities Broking
Castor seed prices may correct due to arrival pressure: Angel Commodities Broking
US import curbs cushion Aluminium: Angel Commodities Broking
Jeera down on reports of higher production prospects: Angel Commodities Broking
Cotton may trade lower on anticipation of improved arrivals: Angel Commodities Broking
Correction in the metals pack - An opportunity for longs? - Angel Commodities Broking
OPEC and its output cap, the never ending story: Angel Commodities Broking
Nickel resumes its freefall after a brief rally: Angel Commodities Broking
Jeera hit all time high on export demand, diminishing stocks: Angel Commodities Broking
Edible oil slipping from 10 month high on record imports and higher oil seed production in 2016/17: Angel Commodities Broking
Sluggish Chinese economy hits base metals: Angel Commodities Broking
Will the rally continue for oil prices? Angel Commodities Broking
Battery demand prospects fuel Nickel to two-year high: Angel Commodities Broking
Castor seed heading for first monthly loss in 5 months in October: Angel Commodities Broking
Mustard prices likely to trade higher in coming month on improved demand: Angel Commodities Broking
Aluminium rules the commodity charts: Angel Commodities Broking
Zinc shines bright thanks to supply woes, China's RRR cut: Angel Commodities Broking
Weekly Agri-Commodities Update | Angel Commodities Broking
Double whammy of North Korea, S&P downgrade hits metals: Angel Commodities Broking
Early Chinese output cuts boost metals: Angel Commodities Broking
Weekly Agri-Commodities - Update - Angel Commodities Broking
Profit booking, weak Chinese data bother base metals: Angel Commodities Broking
Safe haven play back in gold: Angel Commodities Broking
Weekly Agri-Commodities Update - Angel Commodities Broking
Steel rally, Chinese demand prospects - win-win for base metals: Angel Commodities Broking
Turmeric surge on diminishing arrivals and improving demand: Angel Commodities Broking
Weekly Agri-Commodities Update - Ritesh Kumar Sahu - Angel Commodities Broking
Bull run in metals far from over: Angel Commodities Broking
Safe haven play back in precious metals, Oil falls on over supplied markets: Angel Commodities Broking
Weekly Agri Commodities Update: Angel Commodities Broking
Castor Prices surge on higher exports, crop damage: Angel Commodities Broking
Steel rally pushes base metals to new highs: Angel Commodities Broking
Oil loses its shine this week, Non farm payrolls the focus tonight: Angel Commodities Broking
Weekly Agri - Commodities Update: Angel Commodities Broking
Guar prices surge on good exports and heavy rains: Angel Commodities Broking
Nickel jumps to highest since April'17: Angel Commodities Broking
Fearing record imports, Pepper hit lower circuit on MCX and NCDEX on debut: Angel Commodities Broking
DX nosedive to 11-month lows; base metals rejoice: Angel Commodities Broking
Weekly Agri-Commodities Update: Angel Commodities Broking
Crude oil outshines the commodities space - gains solid 5 percent this week: Angel Commodities Broking
Turmeric prices surged to 11 month high: Angel Commodities Broking
Commodities loses its charm in the recent weeks: Angel Commodities Broking
Crude oil in a state of supply overhang: Angel Commodities Broking


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018