DAILY REVIEW 21 October 2014

EU Analysis:

EU: Daily- The candle is a normal spread (85pips) bull spinning top closing on low vol<9days. The candle close and volume suggests more upside but with reduced buying pressure. Levels of interest: Demand: short-term 1.2740 (Monthly ema200), 1.2724 (H1ema200), 1.2700, 1.2500 Daily/Weekly: 1.2034 Supply: short-term: 1.2900, 1.2950, 1.2975, 1.3000. Background: The fundamentally weak Euro vs the FED's wait and see strategy. Yesterday I wrote "SM is likely to create selling pressure and test Asia low (1.2735) or lower before reversing upwards" and this happened with price going to 1.2730 yesterday and pushing to new highs. Price has since made new current high of 1.2836 today. With the US news out later, SM is likely to test the 1.2845 level or higher to 1.2865 before reversing to test Asia low at 1.2787 or lower to around the 1.2750 level before the push back up to 1.2900 and higher.

EU long levels: 1.2787, 1.2740, 1.2720, 1.2700

EU short levels: 1.2900, 1.2950, 1.2975, 1.3000

GU Analysis:

GU: Day- The candle is a normal spread (99pips) bull spinning top closing on low vol<8days. The candle close and volume suggests more upside with reduced buying pressure and also continued volume divergence indicating reduced buying with higher prices. Demand: Weekly/Daily:  1.5850 Supply: Short term: 1.6225, 1.6400, 1.6492, 1.6523 Price has pushed higher since Asia to 1.6183 as of writing. With the upcoming UK news, SM is likely to test the 1.6225 pivot or higher before reversing.  

GU long levels: 1.6040, 1.6028, 1.5853 
GU short levels: 1.6225, 1.6286, 1.6400, 1.6492, 1.6523 

Posted at 03.55 am EST