GBPUSD has support at 1.5125/20 again today

Daily Forecast - 21 January 2015

GBPUSD

GBPUSD has support at 1.5125/20 again today then strong longer term 5 year trend line support at 1.5090. Try longs with wide stops below 1.5050. January's low at 1.5035/30 is the last line of defence for the bulls. Be ready to go with a break lower for a move to 1.5012/06 then 1.4935 before support at 1.4870/60.

Immediate resistance at 1.5175/80 but above here a selling opportunity at 1.5210/5220 with stops above 1.5240. On a break higher 1.5220/10 is likely to act as support for a move towards resistance at 1.5260/5270. Any shorts here will need a stop above 1.5280 to target very strong resistance at 1.5320. A high for the day expected here. Sell with stops on a move above 1.5360.

Dax March contract

Dax March now so overbought that risks are increasing to the downside. Again today, failure to beat 10,270/10,260 sees 10,220/2015 then this week's low at 10,195. Be ready to go with a break lower to target 10,175 and perhaps far as good support at 10,130/120. A good chance of a low for the day to try longs with a stop below 10,090. However just be aware that on a break lower we should target excellent short term support at 10,040/030.

will need to beat 10,270/10,260 to retest Friday's high at 10,305/316. Be ready to go with a break higher today to target 10,350/355 then 10,370/375. Any further gains this week could target 10,440/450 then 10,550/560.

AUDUSD

AUDUSD support at 8155/50 is key to direction today. If trying longs we need stops below 8135. Be ready to go with a break lower using 8150 as resistance for a move towards 8115 & perhaps as far as a retest of last week’s low at 8075/8065. Just be aware that any further losses this week target January lows at 8035/30.

We could still hold support at 8155/50 and recover a little to 8175/8180, perhaps even as far as 8200/8205. Unlikely any further as the outlook turns more negative but shorts need a stop above yesterday's high of 8218. On a break higher look for a very good selling opportunity at 8230/8240 with a stop above 8260.

Emini Dow Jones March contract

Emini Dow Jones March same levels apply for today as we become overbought short term. Immediate resistance at 17,480 but above here re-targets resistance at 17,500/520. Try shorts in this band with stops above 17,540. However be ready to go with a break higher for the next target & resistance at 17,585/590. Try shorts with a stop above 17,630. Be ready to go with a break higher using 17,590 as support for a move up to very strong resistance at 17,675/695. This is an excellent selling opportunity with stops above 17,750.

Failure to beat 17,480 targets 17,410/400 then support at 17,345/330. Failure here however offers a buying opportunity once again at 17,270/260 with a stop below 17,200. Watch good support at 17,180/170 which could hold the downside but longs need stops below last week's low of 17,125.

EURUSD

EURUSD same levels apply for today but we must beat immediate resistance at 1.1605/15 to re-target resistance at 1.1650/55. We should struggle here again & a high for the day possible but shorts need stops above 1.1670. Be ready to go with a break higher using 1.1655/50 as support to target strong resistance at 1.1705/15. This as an excellent selling opportunity with a stop above 1.1740.

Failure to beat 1.1605/15 targets support at 1.1550/1545 which could hold the downside again today. However, be ready to go with a break lower for a retest of 1.1485/75 & perhaps as far as last week's low at 1.1459. Try longs with stops below 1.1445. Be ready to go with a break lower however to target 1.1430/25.