DAILY REVIEW 15 December 2014

EU Analysis:

EU: Weekly- The candle is an above average spread (247pips) bull closing off the high on high vol>5weeks. The candle close and volume suggests more upside. Daily- The candle is a normal spread (100pips) bull spinning top closing on high vol<3days. 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: Fundamentally the Euro remains weak. Price opened gapped up about 14pips and went to 1.2477 before retreating. The order book suggests clear stops around 1.2500-10, 1.2550, 1.2600 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 maintain selling pressure to around 1.2360 or lower before reversing to retest 1.2495 and higher prior to resuming the downward movement. 

EU long levels: 1.2360, 1.2300, 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: Weekly- The candle is a normal spread (215pips) bull closing off the high on low vol<1week. The candle close and volume suggests more upside. Day- The candle is a small spread (52pips) bear spinning top closing on low vol<3days. 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: Without any significant UK data/news, the fundamentals remain unchanged with a technical short bias for trend. There is no significant demand level until 1.5500 - 1.4426 pivot. Price pushed to Asia high at 1.5745 before reversing downward. The current order book shows a significant bunch of volume trapped longs with stops at 1.5630-40, 1.5610-00. Trapped shorts have possible stops at 1.5760-80 and possible supply at 1.5800, 1.5860 Short term demand appears to be at 1.5650, 1.5550, 1.5500.  SM is likely to continue the downward pressure and induce shorts at 1.5624 pivot before reversing to retest today's high or higher. 

GU long levels: 1.5624, 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 06.39 am EST