DAILY REVIEW 11 December 2014

EU Analysis:

EU: Daily- The candle is a normal spread (86pips) bull closing at the high on high vol<1day. The candle close and volume suggests more upside. 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: As analyzed yesterday, SM cleared stops up to 1.2447 and closed at the high. Price has a higher high today in Asia but has reversed downward. The order book suggests stops around 1.2450-70, 1.2500-10, 1.2530, 1.2550 There is no "demand" until 1.2400, 1.2350-70 and 1.2300 The clearing up of weak short positions is continuing before the actual continuation down. SM is likely to continue to fade weak longs to around 1.2424 or lower before reversing to retest yesterday's high at 1.2495 and higher prior to resuming the downward movement. 

EU long levels: 1.2400, 1.2257, 1.2240, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040

EU short levels: 1.2510, 1.2530, 1.2550, 1.2600


GU Analysis:

GU: Day- The candle is a below average spread (71pips) bull closing on low vol<1day. The candle close and volume suggests more upside. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: 1.5761, 1.5825, 1.5840, 1.5880, 1.5905 Background: Pretty much unchanged. Yesterday I wrote " ..to maintain buying pressure to the 1.5716 level or higher" There is no significant demand level until 1.5500 - 1.4426 pivot. Price pushed to 1.5718 yesterday and went to Asia high at 1.5756 before reversing downward. The current order book shows a significant bunch of volume trapped long with stops at 1.5750-80 and possible supply at 1.5800, 1.5860 Short term demand appears to be at 1.5690, 1.5600, 1.5550, 1.5500.  SM is likely to retest Asia low or around the 1.5700 key level before reversing long to retest the high of 1.5756 or higher before reversing.

GU long levels: 1.5690, 1.5600, 1.5550, 1.5500, 1.5426, 1.5400 

GU short levels: 1.5762, 1.5785, 1.5800, 1.5825, 1.5860

Posted at 02.07 am EST