FX DAILY STRATEGY JANUARY 16th, 2014

EUR/USD:
Our preference: Bearish setups within 1.3615 - 1.3655 with targets @ 1.3581 & 1.3553 in extension.

Alternative scenario: Above 1.3655, watch for bullish setups with 1.3670 as target and 1.3699 in extension.

Comment: EUR/USD has pulled back into the confluence zone. Note that hourly stochastic is overbought.


AUD/USD:
Our preference: Bearish setups on a pull-back move to within 0.8815 - 0.8885 with targets @ 0.8763 & 0.8727 in extension.

Alternative scenario: Above 0.8885, watch for bullish setups with 0.8932 as target and 0.8965 in extension.

Comment: AUD/USD remains under pressure. Note that hourly stochastic has crossed up. Watch the level of 0.8863 (50% Fibonacci).


GBP/USD:
Our preference: Bearish setups on a pull-back move to within 1.6375 - 1.6415 with targets @ 1.6355 & 1.6321 in extension.

Alternative scenario: Above 1.6415, watch for bullish setups with 1.6435 as target and 1.6463 in extension.

Comment: GBP/USD remains under pressure. Note that hourly stochastic has crossed down. Watch the level of 1.6329 (50% Fibonacci).


EUR/JPY:
Our preference: Bullish setups on a pull-back move to within 142.15 - 142.65 with targets @ 142.90 & 143.16 in extension.

Alternative scenario: Below 142.15, watch for bearish setups with 141.78 as target and 141.45 in extension.

Comment: EUR/JPY has pulled back to the confluence zone. Note that hourly stochastic has crossed down.Watch the level of 142.34 (50% Fibonacci).


GOLD:
Our preference: Bearish setups within 1242.10 - 1247.30 with targets @ 1239.16 & 1234.22 in extension.

Alternative scenario: Above 1247.30, watch for bullish setups with 1250.21 as target and 1255.15 in extension.

Comment: Correction has pulled back into the confluence zone. Note that hourly stochastic is overbought. Watch the level of 1244.69 (50% Fibonacci).