DAILY STRATEGY JANUARY 14/01/2014

EUR/USD:
Our preference: Bullish setups within 1.3635 - 1.3675 with targets @ 1.3686 & 1.3714 in extension.

Alternative scenario: Below 1.3635, watch for bearish setups with 1.3614 as target and 1.3596 in extension.

Comment: EUR/USD is in consolidation mode. 20 MA is approaching 50 MA on hourly chart. Note that hourly stochastic has crossed up.


AUD/USD:
Our preference: Bullish setups on a pull-back move to within 0.8980 - 0.9020 with targets @ 0.9085 & 0.9137 in extension.

Alternative scenario: Below 0.8980, watch for bearish setups with 0.8948 as target and 0.8916 in extension.

Comment: Correction occurs on AUD/USD. Note that hourly stochastic is rising.


GBP/USD:
Our preference: Bearish setups on a pull-back move to within 1.6390 - 1.6430 with targets @ 1.6346 & 1.6308 in extension.

Alternative scenario: Above 1.6430, watch for bullish setups with 1.6469 as target and 1.6507 in extension.

Comment: GBP/USD is under pressure. Note that a bearish flag pattern is emerging on hourly chart.


EUR/JPY:
Our preference: Bearish setups on a pull-back move to within 141.50 - 142.00 with targets @ 141.65 & 141.21 in extension.

Alternative scenario: Above 142.40, watch for bullish setups with 141.09 as target and 140.49 in extension.

Comment: EUR/JPY has pulled back to the confluence zone. Note that hourly stochastic has crossed down.Watch the level of 141.77 (50% Fibonacci).


USD/JPY:
Our preference: Bearish setups on a pull-back move to within 103.50 - 104.05 with targets @ 102.85 & 102.26 in extension.

Alternative scenario: Above 104.05, watch for bullish setups with 104.39 as target and 104.75 in extension.

Comment: USD/JPY remains under pressure. Note that hourly stochastic has crossed down.


GOLD:
Our preference: Bullish setups on a pull-back move to within 1243.50 - 1250.80 with targets @ 1255.13 & 1263.79 in extension.

Alternative scenario: Below 1243.50, watch for bearish setups with 1236.75 as target and 1227.07 in extension.

Comment: Gold price remains in an upward trajectory. Note that hourly stochastic has crossed up but RSI is overbought.