DAILY REVIEW 10 September 2014

EU Analysis:

EU: The daily candle is a normal spread (98pips) bull closing off the high on very high vol>2 days. The very high volume yesterday coupled with the fact that the highest volume in 3 trading months was 2 days ago suggests that big boys have taken profit from their short positions. The candle close and volume suggests SM has been creating buying pressure fading weak shorts. Levels of interest: Demand: Daily/Weekly: 1.2777, 1.2754, 1.2661 Supply: short-term: 1.3025, 1.3050 Weekly/Daily: 1.4184, 1.4246 pivot. Note also that the US treasury managed to sell it's 3 year notes above 1% rate for the first time since 2011. This is indicative of perceived USD strength by the market. SM is likely to maintain the buying pressure to test yesterday's high or higher before reversing to continue the downtrend. The fact remains that the immediate and longer term bias is still short.

EU long levels: 1.2777, 1.2754, 1.2661  
EU short levels: 1.2957, 1.2987, 1.3025, 1.3050 

GU Analysis

GU: The Daily candle is a normal spread (98pips) near-doji closing on very high vol<1day. The candle close and volume suggests profit taking and commencement of fading out of weak shorts. Demand: Weekly/Daily:  1.5870, 1.5850 Short term: 1.6058
Supply: Short term: 1.6158, 1.6185, 1.6230 (Gap), 1.6320 (Gap close) BOE Governer George Carney hinted of a possible rate hike next spring 2015 which caused the cable to rally before fizzing out. The sentiment remains bearish as apart from USD strength, there is still fear persistent in the market with the coming Scottish independence vote that could potentially wreck the 300 year old union with the United Kingdom. With this in mind, it is unlikely for the cable to rally from the current position. We may find the market pushing to test the lows before going up again. SM is likely to test the highs of 1.6158 or higher before reversing to retest the low.

GU long levels: 1.6058, 1.5870 
GU short levels: 1.6158, 1.6185, 1.6230 (Gap), 1.6320 (Gap close) 

Posted at 03.58 am