DAILY REVIEW 14 November 2014


EU Analysis:

EU: Daily- The candle is a below average spread (64pips) bull closing off the high on  low vol<2days. The candle close and volume suggest more upside but on reduced buying pressure. 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 fundamentals remain unchanged after the end of the QE3 program resulted in a resurgence in USD strength amidst an improving US economy. Price is still in an "inside day" candle of the day before and the day before that, pretty much like those Russian dolls and the re-accumulation of short positions continues prior to the Euro CPI data and the US Retail Sales data later today. SM will always use the news as a means to complete a move, put another way, they will use the news to complete the re-accumulation before reversing back into the downward trend. SM tested the 1.2491, just 6 pips lower than Wed high of 1.2497, before dropping back down. SM has already just tested yesterday's low 1.2425 level and in the process of trapping these weak shorts and likely 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 normal spread (87pips) bear closing near the low on low vol<2days. The candle close and volume suggests  more downside. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: Short term- 1.5816, 1.5850 Background: Prices are being quickly marked down after the UK data. There is really no demand level until 1.5500 - 1.4426 pivot. The interest in this pair would only come at these demand levels or a retrace to the breakout level 1.5800 or higher. 

GU long levels: none for some way to go 

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

Posted at 3.15 am EST