DAILY REVIEW 10 December 2014

EU Analysis:

EU: Daily- The candle is a very large spread (155pips) bull closing 1/2 off the high on very hihj vol>2days. The candle close and volume suggests more upside with reduced buying pressure. Levels of interest: Demand: Daily/Weekly: 1.2257, 1.2240, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040 Supply: short-term: 1.2400, 1.2455, 1.2500, 1.2530, 1.2600 Background: Despite Euro remaining weak, SM cleared stops up to 1.2447 yesterday on an innocuous report. The order book suggests stops around 1.2450-70, 1.2500-10 There is no "demand" until 1.2350-70 and 1.2300 The clearing up of weak short positions continues before the actual continuation down. SM is likely to continue to fade weak shorts to retest the yesterday's high 1.2447 or higher before reversing to continue the downward movement. 

EU long levels: 1.2257, 1.2240, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040

EU short levels: 1.2455, 1.2500, 1.2530


GU Analysis:

GU: Day- The candle is a normal spread (91pips) bull small-body spinning top closing on high vol>1day. The candle close and volume suggests more upside with reduced selling pressure. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: 1.5761, 1.5825, 1.5840, 1.5880, 1.5905 Background: The poor UK data did not give much of a reaction and SM tripped stops all the way to 1.5716 yesterday. There is no significant demand level until 1.5500 - 1.4426 pivot. The current order book shows a significant bunch of volume trapped long with stops at 1.5720-40, 50-80 and possible supply at 1.5800 Demand appears to be at 1.5600, 1.5550, 1.5500. SM is likely to maintain buying pressure to the 1.5716 level or higher before reversing to fade to resume the downtrend. 

GU long levels: 1.5550, 1.5500, 1.5426, 1.5400 

GU short levels: 1.5716, 1.5730, 1.5762, 1.5785, 1.5800, 1.5825

Posted at 02.35 am EST