DAILY REVIEW 7 November 2014

EU Analysis:

EU: Daily- The candle is a very large spread (168pips) bear closing at  the low. THe candle close and volume suggests more downside. Levels of interest: Demand: short-term Daily/Weekly: 1.2266, 1.2240, 1.2157, 1.2182, 1.2133, 1.2105, 1.2053, 1.2037 Supply: short-term: 1.2440, 1.2460, 1.2499, 1.2518, 1.2545 Background: FED removed QE + BOJ's QE program + better than expected US growth rate + unchanged ECB interest rate + dovish Draghi + potential ECB QE expectation by S&P. With the tipping point finally reached, prices finally fell right through the "bottom" and went to 1.2364 Prices have oscillated in Asia and early European session as SM positions prices prior to the NFP release later today. SM is likely to fade weak shorts to around the 1.2600 key level or higher before reversing to resume the downtrend. 

EU long levels: 1.2266, 1.2240, 1.2157, 1.2182, 1.2133, 1.2105, 1.2053, 1.2037 

EU short levels: 1.2440, 1.2460, 1.2499, 1.2518, 1.2545, 1.2675, 1.2700

GU Analysis:

GU: Day- The candle is a very large spread (177pips) bear closing at the low on very high vol>14 days. The candle close and volume suggests more downside. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: 1.5853, 1.5874, 1.5892, 1.5925, 1.5975 Price closed decisively below the 1.5853 pivot and will head lower. Prices have already made a lower low today. The next daily pivot at 1.5426 is not really significant but may provide a bounce level later, next significant demand is at the 1.5100 level. Bias is short and we will look to take continuation trades in that direction.

GU long levels: 1.5426, 1.5100 
GU short levels: 1.5853, 1.5874, 1.5892, 1.5925, 1.5975

Posted at 5.03 am EST