EU Analysis:
EU: Daily- The candle is a very large spread (195pips) bear closing just off the low on very high vol<1day. The candle close and volume suggests more downside. 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: 1.2500, 1.2530, 1.2600 Background: The fundamentals of the Euro is weak. This, coupled with the FOMC statement yesterday where the new term "patience" regading rate increases plus the dropping of the term "considerable time" resulted in a surge in the greenback and US equities. As always, after a huge move on news, there will be a large number of traders trapped and also an almost equal number in profit. The question now is whether or not this move is the real continuation of the downtrend. The fx order book shows order stacks at 1.2300-10, 1.2235-55, 1.2190-1.2200 SM is likely to fade weak shorts to around 1.2370 or higher before reversing to test the 1.2246 pivot. A close below 1.2240 will likely see a push to the 1.2041 pivot.
EU long levels: 1.2240, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040
GU Analysis:
GU long levels: 1.5546, 1.5500, 1.5426, 1.5400
GU short levels: 1.5641, 1.5700, 1.5785, 1.5800, 1.5825, 1.5860
Posted at 03.18 am EST
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