DAILY REVIEW 29 December 2014

EU Analysis:

EU: Weekly- The candle is a below average spread (107pips) bear closing near the low on very low vol<21weeks. The candle close and volume suggests more downside. Daily- The candle is a small spread (42pips) bear closing near the low on very low vol<82days. 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: This is the holiday season with very thin liquidity. The fx order book shows order stacks at 1.2300-10, 1.2140-1.2150 Price action has been pretty anemic in a thin market devoid of significant news. SM is likely continue to fade weak shorts to the 1.2270 level or higher before reversing. 

EU long levels: 1.2152, 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: Weekly- The candle is a below average spread (179pips) bear closing almost 1/2 off the low on low vol<15weeks. The candle close and volume suggests more downside. Day-The candle is a very small spread (29pips) bull "dragon fly doji" closing on very low vol<82pips. The candle close and volume suggests more downside. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: 1.5761, 1.5825, 1.5840, 1.5880, 1.5905 Background: This is the holiday season with very thin liquidity. Fx order book shows order stacks at 1.5800, 1.5750, 1.5700, 1.5650, 1.5600, 1.5500, 1.5480, 1.5400 Prices pushed higher to 1.5585 before retracing. SM is likely to maintain buying pressure to around the 1.5620 level or higher before reversing. 

GU long levels: 1.5426, 1.5400 

GU short levels: 1.5620, 1.5655, 1.5700, 1.5785, 1.5800, 1.5825, 1.5860

Posted at 7.51 am EST