DAILY REVIEW 8 October 2014

EU Analysis:

EU: Daily- The candle is a normal spread (98pips) bull hammer losing on ultrahigh vol>320days. The candle close and volumes suggests selling and more downside.  Levels of interest: Demand: short-term 1.2500 Daily/Weekly: 1.2034 Supply: short-term: 1.2600, 1.2615, 1.2634, 1.2661,1.2680,1.2698, 1.2715, 1.2738 (monthly ema200), 1.2790, 1.2800, 1.2820, 1.2840. Background: The fundamentals remain unchanged and bias is still for a weaker Euro. SM tested the 1.2675 level and reversed from 1.2681. Looking at the volume activity on yesterday's candle, it is now unlikely to get to the 1.2700 key level. SM has pushed prices making a higher high during Asia to 1.2682 and has since reversed. SM are likely test 1.2665 or higher to Asia high before continuing the downward movement.

EU long levels: 1.2500, 1.2034

EU short levels: 1.2665, 1.2682, 1.2698, 1.2715, 1.2740, 1.2790, 1.2800, 1.2820, 1.2840

GU Analysis:

GU: Day- The candle is a normal spread (102pips) bull small body spinning top closing on very high vol>11days. The candle close and volume suggests selling. Demand: Weekly/Daily:  1.5900, 1.5850 Supply: Short term: 1.6116, 1.6150, 1.6185, 1.6200, 1.6224 Yesterday I wrote "SM is likely to maintain buying pressure to retest the high at 1.6116 or higher before reversing back down" and they went to 1.6127 and reversed. SM is likely to retest the 1.6100 level or higher before reversing to resume the downward move.

GU long levels: 1.6050, 1.5870 
GU short levels: 1.6100, 1,6116, 1.6127, 1.6150, 1.6161, 1.6185, 1.6200 

Posted at 02.30 am EST