DAILY REVIEW 20 November 2014


EU Analysis:

EU: Daily- The candle is a normal spread narrow body spinning top closing on vol>1day. The candle close and volume suggests selling. Levels of interest: Demand: short-term 1.2500, 1.2477, 1.2465, 1.2457 Daily/Weekly: 1.2266, 1.2240, 1.2157, 1.2182, 1.2133, 1.2105, 1.2053, 1.2037 Supply: short-term: 1.2632, 1.2640, 1.2685, 1.2745 (confluence with Monthly ema200 1.2735) Background: The fundamentals are unchanged and the Euro remains weak. As expected the FOMC minutes provided SM the fuel to spike up to take orders upto the 1.2597 level, just shy of the 1.2600 key level before retracing to wipe out the weak longs completely at the time of writing. So we have a clear SM controlled level from 1.2500 - 1.2597. The induction of shorts at yesterday's low of 1.2511 and the subsequent trapping of breakout traders there or lower will confirm the SM bias remains long. SM is likely to test the 1.2600 level and higher before resuming the downtrend.

EU long levels: 1.2500, 1.2477, 1.2465, 1.2457, 1.2442 

EU short levels: 1.2550, 1.2570, 1.2590, 1.2640, 1.2685, 1.2745


GU Analysis:

GU: Day- The candle is a large spread (131pips) bull large ody spinning top. The candle close and volume suggests more upside but with the commencement of selling. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: Short term- 1.5816, 1.5850 Background: The fundamentals remain unchanged and there is no significant demand level until 1.5500 - 1.4426 pivot. The interest in this pair would only come at these demand levels. SM pushed to 1.5720 during the FOMC and has already trapped and taken out the breakout long traders' stops and then induced shorts at NY session low wheere breakout short traders are now trapped and likely to be taken out as continues to push upward to test the 1.5734 pivot or higher before reversing to resume the downtrend. 

GU long levels: 1.5591, 1.5561 

GU short levels: 1.5734, 1.5816, 1.5825, 1.5840, 1.5880, 1.5905

Posted at 6.09 am EST