EURUSD failure to beat first resistance at 1.1320/15

Daily Forecast - 29 January 2015

EURUSD

EURUSD failure to beat first resistance at 1.1320/15 sees a retest of support at 1.1275/70. A break lower today targets support at 1.1235/30. Any longs here need stops below 1.1195/90 to target 1.1150/00 before a retest of two-day lows at 1.1113/1.1098. Failure here this week targets 1.1045 then 1.1010/1000. If we continue lower look for 1.0965/62 then 1.0930 and 1.0907/05. A break below here risks the move as far as 1.0845.

Holding support at 1.1275/70 triggers a recovery to 1.1320/25 but above here look for a selling opportunity at 1.1375/85. Shorts need stops above 1.1400 for a move towards very strong resistance at 1.1445/55 & an excellent selling opportunity with stops above 1.1480. An unexpected break higher however sees 1.1455/1.1445 work as good support for a move up towards the next target of 1.1545/50. This should be a very good selling opportunity with a stop above 1.1585.

GBPUSD

GBPUSD is overbought short term & failure to beat first resistance at 1.5155/45 targets our buying opportunity at 1.1520/1.1515. Try longs with stops below 1.1500. However a break lower targets 1.5085 then strong support at 1.5065/1.5055. A bounce from here is expected but longs will need a stop below 1.5035.

First resistance at 1.5145/55 but above here targets 1.5210/1.5220 again today. There is a better chance of a break higher so shorts need stops above 1.5235 for a move to the next target of 1.5265/1.5270. There is a good chance of a high for the day here so try shorts with a stop above 1.5300. Just be aware that an unexpected break higher will then target 1.5325/1.5335.

USDJPY

USDJPY holding below 117.75/70 targets support at 117.35/25. On a break lower this week look for good support at 117.00/96. Try longs with stops below 116.80. Be ready to go with a break lower using 117.00 as resistance to target 116.50/45 then 116.05/00 before January lows at 115.82.

First resistance at 117.75/70 but above here targets resistance at 118.20/25. A break higher today meets strong resistance again at 118.80/85. Try shorts with a stop above 119.00. A break above the five-day range today is positive, so be ready to go with a break to target 119.30/35 and perhaps as far as trend line resistance at 119.70. A good chance of a high for the day here but if we continue higher this week look for 119.88/96.

AUDUSD

AUDUSD holding below 7900/7895 keeps the market under pressure to target 7873/69 then retest this week's low & support at 7850/45. Be ready to go with a break lower to target 7800 & perhaps as far as 7787.

Above 7900 is less negative for now & opens the door to first resistance at 7935/40. Try shorts with stops above 7955. On a break higher however we meet strong resistance at 7995/8000 to try shorts with stops above 8025! However be ready to go with a break higher using 7995 as support to target 8040 & perhaps as far as strong resistance at 8080/85 for a selling opportunity.

Gold February Contract

Gold February immediate resistance at 1288/89 is the main challenge today, but shorts need stops above 1293. A break higher targets 1298/1300 & we should struggle here. Hi if prices continue higher look for a selling opportunity at strong resistance at 1307/1308. Try shorts with a stop above 1311. However be ready to go with an unexpected positive break higher using 1308/1307 as support, for a move up to 1313 then 1319 and perhaps as far as 1322/1324.

First support at yesterday's low of 1280/79 but below here targets good support at 1275/1274. This could hold the downside so try longs with stops below 1270. A break lower however could then target stronger support at 1266/1265. It should be worth buying into longs here with a stop below 1260.