DAILY REVIEW 5 November 2014

EU Analysis:

EU: Daily- The candle is a normal spread (96pips) bull closing 1/3 off the high on low vol<6days. The candle close and volume suggests more upside but with reducing buying pressure. Levels of interest: Demand: short-term 1.2520, 1.2511 Daily/Weekly: 1.2053, 1.2037 Supply: short-term: 1.2576, 1.2600, 1.2645, 1.2675, 1.2700 Background: The USD Index continues to strengthen significantly after the FED's removal of QE plus the BOJ's QE program. As expected, shorts were trapped as prices went higher yesterday to 1.2576 SM is likely to continue to fade weak shorts to around the 1.2600 key level or higher before reversing to resume the downtrend. 

EU long levels: 1.2520, 1.2511, 1.2240, 1.2182, 1.2053, 1.2037

EU short levels: 1.2576, 1.2600, 1.2645, 1.2675, 1.2700

GU Analysis:

GU: Day- The candle is a small spread (51pips) bull closing near the high on low vol<3days. The candle close and volume suggests more upside with reduced buying pressure. Demand: Weekly/Daily:  1.5850 Supply: Short term: 1.6137, 1.6150, 1.6183, 1.6225, 1.6400, 1.6492, 1.6523 Price remains in an inside day (Monday). Price made a higher high of 1.6020 before seemingly falling without reason. It looks like SM is positioning for the UK services data out at 4.30 EST. SM may use the news release to clear weak 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 3.21 am EST