DAILY REVIEW 22 September 2014

EU Analysis:

EU: Weekly- The candle is an above average spread (167pips) bear closing on very high vol<1week. The candle close and volume suggests more downside. Daily- The daily candle is a normal spread (101pips) bear closing at the low on very high vol>75days. The candle close and volume suggests more downside. Levels of interest: Demand: Daily/Weekly: 1.2777, 1.2754, 1.2661 Supply: short-term: 1.2900, 1.2925, 1.2952, 1.3000, 1.3025, 1.3050 Weekly/Daily: 1.4184, 1.4246 pivot. Sentiment remains largely unchanged with USD strength predominant. SM is likely to fade weak shorts to around 1.2900 or even higher, perhaps 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: 1.2900, 1.2925, 1.2952, 1.3000, 1.3025, 1.3050 

GU Analysis 

GU: Weekly- The weekly candle is an above average spread (362pips) near doji "upthrust" closing on ultrahigh vol>61weeks. The candle close and volume suggets more downside. Daily- The daily candle is a very large spread (240pips) bear upthrust closing on ultrahigh vol>307days. The candle close and volume suggests more downside. 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: 1.6390, 1.6475, 1.6505, 1.6550, 1.6585, 1.6600, 1.6622 Background: SM has made the most of the Scottish referendum pushing prices down and then back up and dropping like a rock last week. The aftermath of it now sees the British government scrambling to fulfill promises made and this will create further volatility as expectations rise and fall. SM is likely to fade weak shorts to around 1.6390 or higher before reversing to resume the downtrend to test the current 1.6050 low. 

GU long levels: 1.6242, 1.6050, 1.5870 
GU short levels: 1.6390, 1.6475, 1.6505,1.6550, 1.6585, 1.6600, 1.6622 

Posted at 11.14 pm EST 21 Sep 2014