Daily Strategy December 23rd / 2013

Technical Analysis:
EUR/USD:
Our preference: Bearish setups within 1.3670 - 1.3710 with targets @ 1.3625 &1.3581 in extension.

Alternative scenario: Above 1.3710, watch for bullish setups with 1.3767 as target and 1.3812 in extension.

Comment: EUR/USD has pulled back into the confluence zone. Note that 20 MA has crossed above 50 MA on hourly chart

GBP/USD:
Our preference: Bullish setups within 1.6320 - 1.6380 with targets @ 1.6420 & 1.6484 in extension.

Alternative scenario: Below 1.6320, watch for bearish setups with 1.6279 as target and 1.6215 in extension.

Comment: GBP/USD remains in consolidation mode. Note that hourly stochastic has crossed down.

GOLD:
Our preference: Bearish setups within 1200.95 - 1215.30 with targets @ 1196.35 & 1187.04 in extension.

Alternative scenario: Above 1215.30, watch for bullish setups with 1226.49 as target and 1234.95 in extension.

Comment: Gold price has pulled back into the confluence zone. Note that hourly stochastic has crossed up.

DAILY FOREX POST – GOLD DECEMBER 23, 2013

GOLD Technical view

SPOT GOLD Previous day OHLC

Open	High	Low	Close	Change
1189.90	1206.99	1185.10	1202.64	13.04

Today's Support and Resistance

Resistance
Support
R3	1232.00
R2	1220.00
R1	1213.00
S1	1180.00
S2	1175.00
S3	1160.00

Spot gold ended the session on Friday with gains of 1.09%, capping three successive losing sessions. The precious metal rebounded after grazing crucial near term supports at 1175.00- 1180.00; bottom end of the medium term bullish channel. Near term, the losses could be capped around these levels and a bounce back to 1220-00- 1240.00 cannot be ruled out. However, close below 1175.00, the losses could extend to 1150.00- 1160.00, the final barrier before spot gold could slide to 1000.00- 1050.00 per troy ounce; targets for the symmetrical triangle in a downtrend

TREND DIRECTION

• Short term: Bullish
• Medium term: Bearish
• Long term: Bullish

TRADING RECOMMENDATIONS

• Short:

  • At 1235.00 with a stop at 1240.00 for a target of 1185.00

• Long:

  • At 1240.00 with a stop at 1230.00 for a target of 1260.00