DAILY REVIEW 13 November 2014


EU Analysis:

EU: Daily- The candle is a below average spread (78pips) bear spinning top closing on average vol>2days. 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. Price is pretty much still in an "inside day" candle. Yesterday I wrote "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" - this is now in progress.

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 very large spread (165pips) bear closing at the low on high vol>3days. The candle close and volume suggests more downside. 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: Yesterday's UK data enabled SM to trap longs copleting the restock of short positions and resuming the downtrend. SM is likely to fade weak shorts to the breakout level or higher before pushing further downwards. 

GU long levels: none for some way to go 

GU short levels: 1.5816, 1.5825, 1.5840, 1.5880, 1.5905

Posted at 4.35 am EST