DAILY REVIEW 12 November 2014


EU Analysis:

EU: Daily- The candle is a normal spread (104pips) bull spinning top closing on low vol>1day. The candle close and volume suggests more upside. Levels of interest: Demand: short-term 1.2417, 1.2390, 1.2379 Daily/Weekly: 1.2266, 1.2240, 1.2157, 1.2182, 1.2133, 1.2105, 1.2053, 1.2037 Supply: short-term: 1.2532, 1.2570, 1.2590, 1.2640, 1.2685, 1.2745 (confluence with Monthly ema200 1.2735) Background: The end of the QE3 program resulted in a resurgence in USD strength. Yesterday I wrote "SM is likely to reverse from the 1.2400 levels and fade weak shorts to around the 1.2532 pivot or higher before reversing to resume the downward move." This is still continuing and remains pretty much unchanged. SM is likely to create selling pressure to the 1.2426 level or slightly lower before reversing up to test the 1.2532 pivot or higher.

EU long levels: 1.2390, 1.2379 

EU short levels: 1.2532, 1.2570, 1.2590, 1.2640, 1.2685, 1.2745


GU Analysis:

GU: Day- The candle is a normal spread (110pips) bull closing almost a 1/4 off the high on low vol>1day. The candle close and volume suggests more upside. Demand: Short term- 1.5850, 1.5815, 1.5800 Weekly/Daily:  1.5426, 1.5100 Supply: Short term: 1.5965, 1.6027, 1.6180, 1.6225 Background: Last week, price closed decisively below the 1.5853 pivot and the bias remains short. With the UK data coming out at 4.30am EST today, SM will likely move prices to the levels before continuing their move. SM has made a higher push to 1.5944 before retracing and will likely continue the move since yesterday of fading weak shorts to 1.5965 or higher to 1.6027 before reversing to resume the downtrend. 

GU long levels: 1.5815, 1.5800 
GU short levels: 1.5965, 1.6027, 1.6180, 1.6225

Posted at 3.48 am EST