The EUR dropped yesterday following the FED's decision on Wednesday and the failed attempt to reach 1.3700 again. The  downside move was without any pullback, but not so strong and so sharp. We have finished the day below the positive Ichimoku, which determines the bearish tone for today too. On H4 indicators are heavy bearish however something seems not quite righr with breaking the Ichimoku clouds, and this is the reason for most of the players to be carefull and to watch for a quick recovery. For today i think the pair will make some pullback to 1.3570-80 and then it will start a new downside move with first target 1.3450 and it may even be stronger to reach 1.3400. Weekly target is set to 1.3310.

GOLD turned south as expected, however the move is limited by negative Ichimoku borders, once out of it, bears will gain a lot more power. The price for now stays supported around 1230. We shall see test of 1220 in the days ahead if it succeeds to hold the downside, a quick recovery will take the price back to 1254 and maybe above.

NZD is still bearish trying to find support just above 0.81. Weekly support is at 0.8050, it is not impossible to reach there, but that will stop the downside for sure. I am expecting sonn a correction to 0.8200

AUD has lost this morning almost a half of yesterday's gains. I expect this correction to end close to 0.8750 and the bulls to attack again the 0.88 level.

JPY is fighting with the positive Ichimoku, but the tone is more bearish than bullish, indicators are also pointing to the downside, however just below 102 the pair finds buyers. I think here the bears will continue to control the situation and we are going to move below 102.

GBP started a correction to the downside after several days of upside moves. On H4 it closed also below the Ichimoku cloud and currently the resistance is 1.6500, next resistance is at 1.6555 and we may reach it on a recovery move in EUR/USD pair. I think you may sell there with a tight SL.

For today:

SHORT EUR below 1.3570 SL1.3590 TP 1.3520-1.3470-1.3440-1.3400-1.3390-1.3360

LONG EUR above 1.3540 SL 1.3530 TP 1.3570-85-95

SHORT GOLD below 1248 SL 1254 TP 1230-1222

LONG GOLD above 1222 SL 1218 TP 1248-1254-1266

Good luck!

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Comment by Yasser sorour on January 31, 2014 at 2:45pm



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