Market Reviews of the Previous Day:
During NY session on 6, the dollar rose in oscillation against major currencies. Risk aversion dominated the market on Monday
The euro and sterling fell significantly. The recent economic data once again showed that the Eurozone and the UK economies were slowing, but the debate triggered by debt crisis which has not been solved intensified.
Foreign exchange market basically continued the previous technical trend. There are still many uncertainties in the future. The recent wide range oscillation and fluctuation remained.
The U.S. President Barack Obama will announce a series of job creation and deficit reduction plan to the federal government on Thursday. Market expected that, Obama may launch six employment promotion programs, including the extension of the payroll tax relief period, extension of the period of receiving unemployment insurance, tax breaks for employers, signing trade agreements and increasing infrastructure spending. It intended to enhance economic growth for 1% or 1.5%. That means it will increase 500,000 to 1 million jobs.
In addition, the Fed may launch further monetary stimulus earlier in the first meeting during September 20-21 which is expected to do "reverse operation" for the short-term and long –term debts. It may also expand the asset purchases. By reducing long-term market interest rate, the companies and public financing and spending will be further stimulated.
Key Economic Data and Events:
GMT+8 12:30 Australia Fed announced the decision of interest rate, pre-value 4.75%;
GMT+8 17:00 Eurozone GDP (2nd quarter);
GMT+8 18:00 Germany Manufacturing Orders (July);
GMT+8 22:00 US ISM Non-manufacturing Index (August).
Gold:
The upside 1911.86 is the momentum conversion. As it is a strong resistance, the breakthrough is not confirmed.
Please beware of the possible formation of the partial double-top adjustment.
Observed from the smooth adjusted structure in the 4-hour chart level, the target of 1,940 can be achieved theoretically after breaking the upper high record.
The current long period of the uptrend is perfect. The market sentiment is high. Gold turned to significant adjustment in the mid-term.
After the overall pattern is confirmed, we can observe the formation of the partial adjustment, in order to facilitate the prediction of continuity and movement.
Trading suggestions:
Before breaking the historical high level, the wide range oscillation of gold is at 1911.86-1850.00. Long position could temporarily set the upper range as a target, but the upward breakthrough is not confirmed; or it could be held with take-profit. By using passive way of closing position, the time and price depend on the market.
During NY session on 6, the dollar rose in oscillation against major currencies. Risk aversion dominated the market on Monday
The euro and sterling fell significantly. The recent economic data once again showed that the Eurozone and the UK economies were slowing, but the debate triggered by debt crisis which has not been solved intensified.
Foreign exchange market basically continued the previous technical trend. There are still many uncertainties in the future. The recent wide range oscillation and fluctuation remained.
September 6, international gold closed higher. Due to the concerns of the global economy and the Europe debt crisis, investors sought for risk aversion. Gold again surged to the key point 1900 USD, approaching the high record which hit at the end of August.
Market will focus on the speech of the United States President Barack Obama in the evening of 8 September regarding the boost of the job market. It is also awaiting the Policy Committee meeting of the Federal Reserve during September 20-21.The U.S. President Barack Obama will announce a series of job creation and deficit reduction plan to the federal government on Thursday. Market expected that, Obama may launch six employment promotion programs, including the extension of the payroll tax relief period, extension of the period of receiving unemployment insurance, tax breaks for employers, signing trade agreements and increasing infrastructure spending. It intended to enhance economic growth for 1% or 1.5%. That means it will increase 500,000 to 1 million jobs.
In addition, the Fed may launch further monetary stimulus earlier in the first meeting during September 20-21 which is expected to do "reverse operation" for the short-term and long –term debts. It may also expand the asset purchases. By reducing long-term market interest rate, the companies and public financing and spending will be further stimulated.
Key Economic Data and Events:
GMT+8 12:30 Australia Fed announced the decision of interest rate, pre-value 4.75%;
GMT+8 17:00 Eurozone GDP (2nd quarter);
GMT+8 18:00 Germany Manufacturing Orders (July);
GMT+8 22:00 US ISM Non-manufacturing Index (August).
Gold:
Gold opened at 1883.80 USD on 5 September, with intra-day Low at 1874.6 USD and intra-day High at 1903.43 USD, eventually closing at 1900.51 USD. Intra-day range of 28.83 USD was seen.
Gold went up slightly after oscillating at the narrow range last Friday. Supported by the MA system in the daily chart, the current rebound continued.The upside 1911.86 is the momentum conversion. As it is a strong resistance, the breakthrough is not confirmed.
Please beware of the possible formation of the partial double-top adjustment.
Observed from the smooth adjusted structure in the 4-hour chart level, the target of 1,940 can be achieved theoretically after breaking the upper high record.
The current long period of the uptrend is perfect. The market sentiment is high. Gold turned to significant adjustment in the mid-term.
After the overall pattern is confirmed, we can observe the formation of the partial adjustment, in order to facilitate the prediction of continuity and movement.
Trading suggestions:
Before breaking the historical high level, the wide range oscillation of gold is at 1911.86-1850.00. Long position could temporarily set the upper range as a target, but the upward breakthrough is not confirmed; or it could be held with take-profit. By using passive way of closing position, the time and price depend on the market.
No comments:
Post a Comment