 Risk aversion is the theme of the day, with major European indexes trading in red, while US futures are also diving. Australian Dollar is leading other commodity currencies lower. While Dollar is firm, it's losing some momentum entering into US session. In particular, the greenback is retreating after failing to break through a near term resistance against Euro again. Sterling is currently the stronger one, followed by Euro, will help from buying against Swiss Franc too. Technically, Gold dips notably today but it's still hold on above 1850.18 temporary low. For now, near term outlook in Gold stays bearish with 1919.63 resistance intact. Deeper decline is expected, sooner or later, through 1850.18. Next target is 100% projection of 2070.06 to 1889.79 from 1998.23 at 1817.96. Break of this projection level could prompt downside acceleration. Attention will be on how Gold' next move correlate to FX pairs too. In Europe, at the time of writing, FTSE is down -1.76%. DAX is down -1.37%. CAC is down -1.68%. Germany 10-year yield is up 0.010 at 1.145. Earlier in Asia, Nikkei dropped -2.53%. China Shanghai SSE rose 0.09%. Singapore Strait Times dropped -0.51%. Japan 10-year yield rose 0.0054 to 0.251. |
