DAILY REVIEW 30 December 2014

Note: It remains a holiday market devoid of significant news and heading into month-end and year-end tomorrow where we can expect institutions to dress-up and close their books. Flows can be expected to be either oscillatory or sudden huge ranges as SM goes on an order-hunt to complete their business for the year.

EU Analysis:

EU: Daily- The candle is a near-normal spread (78pips) bear closing at the low on low vol>2days. 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, 1.2250, 1.2230, 1.2120-1.2130, 1.2100 Prices have made new lows today at 1.2131 testing the 1.2133 pivot and SM is likely continue selling pressure to the 1.2120 level or lower before reversing. 

EU long levels: 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 below average spread (78pips) bear closing near the low on low vol>1day. 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, 1.5540-50, 1.5500, 1.5480, 1.5400 Prices continue falling from yesterday to 1.5502 today. SM is likely to push back to around the 1.5540-50  before reversing to continue the down trend. 

GU long levels: 1.5426, 1.5400 

GU short levels: 1.5550, 1.5620, 1.5655, 1.5700, 1.5785, 1.5800, 1.5825, 1.5860

Posted at 11.40 pm EST 29 Dec 2014