DAILY REVIEW 30 October 2014

EU Analysis:

EU: Daily- The daily candle is a large spread (145pips) bear closing at the low on very high vol>8days. The candle close and volume suggests more downside. Levels of interest: Demand: short-term 1.2535, 1.2500 Daily/Weekly: 1.2034 Supply: short-term: 1.2613, 1.2645, 1.2694, 1.2695 Background: The fundamental weakness of the Euro cobined with the the FED's decision to remove QE after 6 years caused EU to tank immediately resuming the downward bias. Yesterday, I wrote "The release of the FOMC minutes later today will likely be nothing more than the fuel for prices to get up to supply levels and then resume the downtrend" and identified a stack of orders at the 1.2760 level where price might potentially stall, prices went to 1.2769 and then tanked. Price did exactly as analyzed yesterday and with lower lows today as the market pushes toward the 1.2500 key level, SM is likely to maintain selling pressure to around the 1.2535 level or lower before reversing back to remove weak shorts to around the 1.2613 or higher and then reversing to continue the downtrend. 

EU long levels: 1.2535, 1.2500

EU short levels: 1.2613, 1.2645, 1.2694, 1.2695

GU Analysis:

GU: Day- The candle is a large spread (158pips) candle closing near the low on low vol>3days. The candle close and volume suggests more downside. Demand: Weekly/Daily:  1.5850 Supply: Short term: 1.6080, 1.6105, 1.6121, 1.6150, 1.6183, 1.6225, 1.6400, 1.6492, 1.6523 As analyzed, the volume divergence kicked into effect and GU nose-dived on release of the FOMC minutes. Prices have already gone lower in Asia and have broken the 1.5993 pivot. SM is likely to reverse and fade weak shorts to around 1.6000 or even to around 1.6033 before reversing to continue the downward move to test the pivot low 1.5874 on its way to 1.5853. Note that GU may find demand again back at the current swing low 1.5874 to the 1.5853 pivot.

GU long levels: 1.6120, 1.6105, 1.6081, 1.6063, 1.5853 
GU short levels: 1.6121, 1.6150, 1.6183, 1.6225, 1.6286, 1.6400, 1.6492, 1.6523 

Posted at 5.33 am EST