DAILY REVIEW 19 December 2014

EU Analysis:

EU: Daily- The candle is a normal spread (87pips) bear closing off the low on high vol<2days. 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: After the FOMC statement, price has made a new low today. The fx order book shows order stacks at 1.2300-10, 1.2235-55, 1.2190-1.2200 SM is likely to keep the selling pressure to test the 1.2247 pivot or lower before reversing to fade the weak shorts. 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

EU short levels: 1.2370, 1.2400, 1.2440, 1.2500


GU Analysis:

GU: Day- The candle is a large spread (128pips) bull closing off the high on high vol<3 days. 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: After the FOMC release, price has not made a lower low. There is no significant demand level until 1.5500 - 1.4426 pivot. Price broke and closed above the 1.5762 pivot yesterday before retracing. Fx order book shows order stacks at 1.5780, 1.5750, 1.5700, 1.5690, 1.5530-40, 1.5500, 1.5480, 1.5400 The fading of weak shorts is continuing and SM is likely to fade to 1.5690 or higher before reversing to test the 1.5540 pivot.  A break below this will see the 1.5500 and the 1.5426 pivot next in line. 

GU long levels: 1.5540, 1.5500, 1.5426, 1.5400 

GU short levels: 1.5700, 1.5785, 1.5800, 1.5825, 1.5860

Posted at 06.06 am EST