Daily analysis of major pairs for January 15, 2014 2014-01-15 EUR/USD: On this pair, we are watching the resistance lines at 1.3700 and 1.3750 as barriers to any possible rallies. We are also watching the supports line at 1.3600 and 1.3550 as possible barriers to bearish runs. Generally, the market is in a kind of equilibrium phase, but the bulls still seem to be gaining upper hands. 1.png USD/CHF: On this pair, we are watching the resistance levels at 0.9100 and 0.9150 as barriers to any possible rallies. We are also watching the support levels at 0.9000 and 0.8950 as possible barriers to bearish runs. Generally, the market is already in a bullish phase, and the price could reach the resistance level at 0.9100. 2.png GBP/USD: This market has really become volatile and there is a serious struggle between the bulls and the bears, while it appears that the bulls could lose out. There is still a bearish indication in the chart, though weak. Unless the Cable gets a new lease of stamina, the target for this week remains at the accumulation territory at 1.6300. It should, however, be noted that the accumulation territory at 1.6350 would need to be broken first. 3.png USD/JPY: From the demand level at 103.50, the USD/JPY rose upwards by more than 150 pips, resulting in a bullish bias. It is better to seek long trades now. 4.png EUR/JPY: The EUR/JPY has quickly recovered the losses it sustained this week. The recent bearish plunge was rejected at the demand zone of 140.50. From there, the market rallied by over 190 pips. Any price movement above the supply zone at 143.00 would mean things have gone bullish, although it is doubtful whether the bulls could drive the price further higher for a long time. 5.png Elliott Wave analysis of AUD/USD for January 15, 2014 2014-01-15 AUDifx.png AUD/USD Elliott Wave After a few weeks in a choppy upward move, the AUD/USD pair moved lower yesterday, impulsive wave i (coloured blue) of the bigger wave (v) (coloured red) was developing. Yesterdays descending movements from 0.9085 toward 0.8927 look impulsive, and that is why we are going with idea that corrective wave (iv) (coloured red) is already complete cycle, final confirmation that we are on the right count will be break below the 0.8865 level. We should see a short-term pullback toward 50% of the cycle from the 0.9085 level before downward move continue, and we can use this level as our entry point for next sell against the 0.9050 level. In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 0.8647 (161.8% of wave 4). Support and Resistance (S3) 0.8823 (S2) 0.8889 (S1) 0.8926 (PP) 0.8992 (R1) 0.9029 (R2) 0.9095 (R3) 0.9132 Trading forecast Proceeding from Elliot Wave rules today, the trend is expected to begin the downward movements. That is why short positions at 0.8995 with stop loss at 0.9050 and take profit at 0.8647 are recommended.
Posted on: Wed, 15 Jan 2014 10:14:16 +0000
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