As expected we have a strong dollar with the new year's opening, most of the market players decided to take their profit from long, but this was just a partly profit taking. I still do not think that the major downside has started and that we have a trend reversal. Do you remember the 'triangle' about which i have told you in the last day of 2013? I have told you also that if we drop below 1.3700 the next target will be 1.3630. This level has bounced several times. This time we have also a good possibility to bounce higher because the price is supported by a negative Ichimoku, the pair is still in a bullish channel with a downside border of 1.3590, which is too close to our 1.3620-30 area. So i think we shall continue to move inside the triangle through this month or at least for the next 2 weeks. This means a consolidation between 1.3600 and 1.3800. Only a break below 1.3540 will destroy the bullish outlook and confirm the correction to the downside has started with the next target of 1.3310 and 1.3250.
GOLD has recovered quickly at the beginning of the new year. But i think this is just profit taking again and the major downside move is still present. As i have forecasted last time on breaking 1220 GOLD will try to reach 1260 or at least 1252 resistance area. For now 1220 serves as support. So long above 1220 with a tight SL is a good idea.
SHORT EUR below 1.3670 SL 1.3685 TP 1.3630-1.3590-1.3540-1.3470-1.3360
LONG EUR above 1.3715 SL 1.3700 TP 1.3750-1.3780-1.3810
LONG GOLD above 1220 SL 1215 TP 1248-1255
SHORT GOLD below 1212 SL 1217 TP 1200-1190