DAILY REVIEW 19 September 2014

EU Analysis:

EU: The daily candle is a normal spread (96pips) bull closing just off the high on very high vol>1day. The candle close and volume suggests more upside. Levels of interest: Demand: Daily/Weekly: 1.2777, 1.2754, 1.2661 Supply: short-term: 1.2952, 1.3000, 1.3025, 1.3050 Weekly/Daily: 1.4184, 1.4246 pivot. Background: The bias is still remains clearly downtrend in line with sentiment and the higher time frame analysis. The immediate reaction of the market since the Scottish referendum has been bullish Asian markets. The previous pivot at 1.2858 had already been decisively broken and generally the order stacks remain generally unchanged. SM is likely to retest yesterday's high at 1.2930 or higher to 1.2955/1.3000 before reversing to continue the downward move to 1.2777 

EU long levels: 1.2777, 1.2754, 1.2661  
EU short levels: 1.2930, 1.2952, 1.3000, 1.3025, 1.3050 

GU Analysis 

GU: The daily candle is a large spread (162pips) bull closing at the high on very high vol>303days. The candle close and volume suggests more upside. Demand: Weekly/Daily:  1.5870, 1.5850 Short term: 1.6248, 1.6058 Supply: Short term: 1.6620, 1.6185, 1.6230 (Gap), 1.6320 (Gap close) Supply Short Term: 1.6550, 1.6585, 1.6600, 1.6622 

Background: The Scottish NO vote has lots of speculators buying the Pound, this euphoria will be short lived as the Ukraine and ISIS situations remain unresolved and will only cause USD to strengthen again. Prices have moved off the lows very significantly. SM is likely to keep the buying pressure to around 1.6550 or higher before reversing to resume the downtrend. In the event that price closes above 1.6360, we can expect it to test the 1.6400 key level or more.

GU long levels: 1.6242, 1.6050, 1.5870 
GU short levels: 1.6550, 1.6585, 1.6600, 1.6622 

Posted at 03.50 am