DAILY REVIEW 3 November 2014

GENERAL NOTE: Today is the last trading day of the month and also a Friday, the last trading day of the week. SM will need to book profits and likely take new positions prior to Monday. You can expect volatility as SM may whipsaw prices up and down to achieve their objectives to close out the month. sorry I forgot to delete this yesterday (4 Nov 2014).

EU Analysis:

EU: Monthly- the candle is a bear closing near the low on ultrahigh vol>34months. The candle close and volume suggests more downside. Weekly- The candle is an above average spread (284pips) bear closing near the low on ultrahigh vol>134weeks. The candle close and volume suggests more downside. Daily- The candle is a large spread (130pips) bear closing 1/4 off the low on low vol<4days. The candle close and volume suggests buying and possibly more downside. Levels of interest: Demand: Daily/Weekly: 1.2053, 1.2037 Supply: short-term: 1.2543, 1.2550, 1.2574, 1.2595, 1.2645 Background: The FED's removal of QE plus Euro weakness will maintain the downward pressure. Prices opened gapped down about 14pips as SM removed weak longs and broke the short term pivot at 1.2455 SM is likely to fade weak shorts to around the 1.2543 or higher before reversing to resume the downtrend. 

EU long levels: 1.2240, 1.2182, 1.2053, 1.2037

EU short levels: 1.2543, 1.2550, 1.2574, 1.2595, 1.2645

GU Analysis:

GU: Month-The candle is a bear closing off the low on ultrahigh vol>36months. The candle close and volume suggests more downside. Weekly- The candle is a above average (240pips) bear closing off the low on high vol<4weeks. The candle close and volume suggests reduced selling pressure. Day- The candle is a below average spread (64pips) bear hammer closing on low vol>9days. The candle close and volume suggests buying. Demand: Weekly/Daily:  1.5850 Supply: Short term: 1.6137, 1.6150, 1.6183, 1.6225, 1.6400, 1.6492, 1.6523 Prices opened and gapped lower 28pips removing weak longs and made a new low at 1.5924 SM is likely to fade weak shorts to 1.6037 level or higher to 1.6100 before reversing to test the current low. Note that GU may find demand again back at the current swing low 1.5874 to the 1.5853 pivot.

GU long levels: 1.5853 
GU short levels: 1.6037, 1.6060, 1.6082, 1.6100, 1.6121, 1.6150, 1.6183, 1.6225, 1.6286

Posted at 6.16 am EST