DAILY REVIEW 22 December 2014

EU Analysis:

EU: Weekly- The candle is an above average (247pips) bear closing just off the low on very high vol>6weeks. The candle close and volume suggests more downside. Daily- The candle is a normal spread (87pips) bear closing near the low on low vol<8days. The candle close and volume suggests more downside. Levels of interest: Demand: Daily/Weekly:  1.2240, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040 Supply: short-term: 1.2300, 1.2356, 1.2375, 1.2425, 1.2500, 1.2530, 1.2600 Background: Price continued to dive post-FOMC. The fx order book shows order stacks at 1.2300-10, 1.2210-20, 1.2190-1.2200 Prices opened slightly gapped down. SM is likely to fade the weak shorts to the 1.2300 level or higher before continuing the downtrend. A close below 1.2240 will likely see a push to the 1.2041 pivot.

EU long levels: 1.2200, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040

EU short levels: 1.2300, 1.2370, 1.2400, 1.2440, 1.2500


GU Analysis:

GU: Weekly- The candle is an above average spread (246pips) bear spinning top closing on very high vol>4weeks (real Futures contracts) The candle close and volume suggests more downside. Day- The candle is a below average spread (77pips) bear closing near the low on low vol<4days. 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: Price has still not made a lower low post FOMC. 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 1.5800, 1.5780, 1.5750-60, 1.5730-40, 1.5700-1.5710, 1.5670-80, 1.5600, 1.5550-70, 1.5520, 1.5500, 1.5480, 1.5400 The fading of weak shorts continues. SM is likely to create selling pressure to around the 1.5600 level and then reverse to continue the fade upward 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: 1.5600, 1.5540, 1.5500, 1.5426, 1.5400 

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

Posted at 11.50 pm EST 21 Dec 2015