ECB ready to act - bulls take their profits

As expected EUR has made a test of 1.4000 resistance, however it was not successful and the market was influenced by the hint from Mr.Draghi that inflation in the eurozone is still low, and the price of the EUR is too high which threatens the recovery of the economy in the eurozone and the ECB is ready to act next month. After that many EUR bulls have taken their profit from LONG and the pair has lost more than 100 pips falling below 1.3900. Currently the pair is trading below the important support of 1.3850, Daily indicators are turning bearish, while H4 and H1 signal for possible upside recovery. This recovery will extend to 1.3870 but will be used to open SHORT positions. Signal from mr.Draghi is EUR negative and noone will invest in EUR in the following days. It is quite possible the next meeting ECB's decision to be consumed days or weeks before. So all eyes are now at 1.3830, breaking below will trigger more profit taking as it will set 1.3850 as a strong resistance. However i do not expect the price to drop below 1.3720 for today and if reached. We have some economic data from Germany this morning which is expected to be better, but that won't help the EUR to return to bullish mode.

GOLD making narrow range moves and my indicators are flat to bearish, it is difficult to determine direction but above 1296 the metal is going to recover to the upside. We are bearish below 1285.

NZD is again close to the support 0.8630, with the dollar gaining strength it will be quite difficult fot hte NZD to record a fresh high, which means that another lower top will lead to testing the Ichimoku's Senkou Span A price on Daily @ 0.8570. We need to close at least one H4 bar above 0.8660 to restore the short term upside.

AUD is currently trading near 0.9360 which is high above the 0.9320 support, we may see testing of the support here too, but as long as the price is above 0.9300 bullish outlook is preserved. Daily indicators show correction to the downside is ahead, H4 say the correction has already started. On H1 we are near to a thin positive Ichimoku and for now it serves as the last support.

JPY is not able to push the dollar below 101.40, however JPY is going to make another attempt to push the dollar to the downside and if that fails too then the dollar recovery will start with full power to 102.10

GBP continues to move with a bearish tone as the week didn't offer any surprises. The pair is still above the support area 1.6900-1.6920. To reverse bullish outlook we need at least 2 H4 bars closed below 1.6900. Above 1.6955 the upside will be fully restored.

For today:

SHORT EUR below 1.3870 SL 1.3885 TP 1.3810-1.3780-1.3760-1.3740-1.3720

LONG EUR above 1.3830 SL 1.3820 TP 1.3850-1.3870-1.3885 (on your own risk)

LONG GOLD above 1296 SL 1293 TP 1304-1309-1315-1325

SHORT GOLD below 1285 SL 1288 TP 1274-1269

Good luck!