DAILY REVIEW 2 December 2014

EU Analysis:

EU: Daily- The candle is a normal spread (87pips) bull "near doji" closing on average vol>5days. The candle close and volume suggests more upside. Levels of interest: Demand: Daily/Weekly: 1.2266, 1.2240, 1.2157, 1.2182, 1.2133, 1.2105, 1.2053, 1.2037 Supply: short-term: 1.2600, 1.2640, 1.2685, 1.2745 (confluence with Monthly ema200 1.2733) Background: Euro's fundamentals remain weak. Differences remain between the ECB and Germany over potential implementation of QE for the Euro. Major event this week is ECB interest rate decision this Thursday. The longer term bias is still downward whilst the current SM cycle is upwards. The order stacks at 1.2540, 1.2550, 1.2565, 1.2600, 1.2700 for the eventual push downwards are still in place and possible stops for weak longs at 1.2420-30 and short term demand at 1.2400. SM is likely to maintain selling pressure to around the 1.2440 or lower before continuing the restocking of shorts at the higher levels prior to reversing for the continuation down.

EU long levels: 1.2440, 1.2418, 1.2400, 1.2355, 1.2266

EU short levels: 1.2600, 1.2635, 1.2685, 1.2745


GU Analysis:

GU: Day- The candle is a very large spread (178pips) bull closing off the high on average vol>5days. The candle close and volume suggests more upside. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: 1.5825, 1.5840, 1.5880, 1.5905 Background: There is essentially no change to the fundamentals despite strong PMI data. There is no significant demand level until 1.5500 - 1.4426 pivot. The order book shows a significant bunch of volume trapped short. The possible stops are at 1.5830, 1.5850, 1.5875. SM is likely to maintain the selling pressure to the 1.5700 level or lower before reversing to restock short orders at 1.5830 or higher in order to esume the downtrend. The technical trend remains down but the current SM cycle is long.

GU long levels: 1.5700, 1.5694, 1.5674, 1.5665, 1.5650, 1.5581, 1.5561 

GU short levels: 1.5825, 1.5840, 1.5880, 1.5905

Posted at 00.59 am EST