FX DAILY STRATEGY JANUARY 17th, 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 remains in consolidation mode. Note that hourly stochastic has crossed down.


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. However, the bearish momentum has turned down. Hourly stochastic and RSI are mixed.


GBP/USD:
Our preference: Bearish setups on a pull-back move to within 1.6355 - 1.6395 with targets @ 1.6321 & 1.6287 in extension.

Alternative scenario: Above 1.6395, watch for bullish setups with 1.6430 as target and 1.6463 in extension.

Comment: GBP/USD remains under pressure. Note that hourly stochastic is oversold. Watch the level of 1.6392 (50% Fibonacci).


EUR/JPY:
Our preference: Bearish setups on a pull-back move to within 142.15 - 142.65 with targets @ 141.78 & 141.45 in extension.

Alternative scenario: Above 142.65, watch for bullish setups with 142.90 as target and 143.16 in extension.

Comment: EUR/JPY is under pressure. Note that 20 MA has crossed below 50 MA on hourly chart. Hourly stochastic has crossed down. Watch the level of 142.44 (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: Gold has pulled back into the confluence zone. Note that hourly stochastic and RSI are overbought. Watch the level of 1244.69 (50% Fibonacci).