Goldman Sachs Cut Rio Tinto Price Target to Sell

Goldman Sachs Cut Rio Tinto Price Target to Sell

In a move seen as brave in the City, Goldman Sachs have cut their price target for miner Rio Tinto and reduced it to a sell rating. This has caused a 140 point drop in the price or the equivalent of 4.2%. There is now potential for both a retracement of a continuation of the fall in price.

The Cypriot government have also announced that they are going to put a hold on the potential savings tax and are going to wait to see what Germany and Russia have to say about the current situation. This comes after a huge amount of money was being pulled out of the country from huge Russian and European conglomerates.

In today’s technical analysis the German ZEW Survey has been released and has come back better than expected at +48.5 with the Consensus at +48.0. Also the equivalent Euro zone ZEW Survey has been released at +33.4 with the consensus being much higher at +42.4.

Fundamental analysis is weak at the moment but the world also watches in anticipation as renewed fears of Coal miners strikes start to grip South Africa again. A reduction in the coal production could have a very bad effect on electricity production.

Daily Technical Analysis

EUR/USD (19/03/2013)

EUR/USD, we have seen a continuation of the range bound movements prevalent over the last couple of days. Near term support on EUR/USD lies at 1.2924 and resistance lies at 1.2980 a break of which would lead to the strong psychological level of 1.3000. We are still in a long term down trend and a continuation of this downward move would see us breaking support and moving to R2 at 1.2880.

GBP/USD (19/03/2013)

GBP/USD, still stuck in the range of 1.5070 as support and 1.5159 as resistance. Resistance is also the 100% on our Fibonacci retracement so presents a very strong daily level for a potential break through trade on the top-side. The price is likely to remain in range or slightly bullish as EUR remains weak and people look to move their currency across to the GBP. The Daily RSI has also broken and confirmed above the 30 level to give more weight to our bullish outlook.

USD/JPY (19/03/13)

USD/JPY, A continuation of loose monetary policy for Japan is pushing up towards further consistent bullish moves. This is being heightened by consistent USD strength and a strong MACD outlook for the price.  

USD/JPY near term resistance lies at 95.78, with near term support at 95.00. The market remains very bullish even though we have seen a short term pull-back from yearly highs.

XAU/USD (18/03/13)

Gold once again pushed up to 2 month highs at 1610 yesterday evening, but has now found itself back in the range of 1600-1610. Because there is little to none in terms of fundamental data out today we will have to look for a technical break of one of these levels to find ourselves consistent profits. A break of 1610 on the top side would open up a price target of 1620. A break of near-term support at 1600 would lead us to a downward move, with near-term R2 at 1597.

Written By Amar Sohal