DAILY REVIEW 23 December 2014

EU Analysis:

EU: Daily- The candle is a small spread (55pips) bear "tombstone" closing on low vol<9days. The candle close and volume suggests a lack of selling interest but more downside can be expected. 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 continues lower post-FOMC as we approach the Christmas holidays. The fx order book shows order stacks at 1.2300-10, 1.2275-1.2285, 1.2210-20, 1.2190-1.2200 Prices pushed to a new low of 1.2215 yesterday before stalling. SM is likely induce shorts at the 1.2215 level or lower before fading weak shorts. 

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

EU short levels: 1.2275, 1.2300, 1.2370, 1.2400, 1.2440, 1.2500


GU Analysis:

GU: Day- The candle is a normal spread (92pips) bear closing off the low on low vol<9days. The candle close and volume suggests more downside but with reduced selling pressure. 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, 1.5565, 1.5530-40, 1.5500, 1.5480, 1.5400 Prices pushed past yesterday's low of 1.5572 to 1.5571 early in Asia. SM is likely to maintain selling pressure to around the 1.5560 level or lower and then reverse to 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: 1.5560, 1.5540, 1.5500, 1.5426, 1.5400 

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

Posted at 2.31 am EST