DAILY REVIEW 8 (sorry wrong date posted yesterday) 9 December 2014

EU Analysis:

EU: Daily- The candle is a normal sprtead (97pips) bull spinning top closing on low vol<3days. The candle close and volume suggests more upside but reduced buying pressure. Levels of interest: Demand: Daily/Weekly: 1.2257, 1.2240, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040 Supply: short-term: 1.2400, 1.2455, 1.2500, 1.2530, 1.2600 Background: Since the FOMC meeting and NFP till yesterday, SM has cleared the range from the current low up to 1.2455 and there are no clear supply levels. The Fx order book confirms no clear supply levels until the 1.2390 - 1.2400 level. It does however reveal demand between 1.2240 - 1.2260. SM is likely to continue to fade weak shorts to the breakout level 1.2357 or higher before reversing to continue the downward movement.

EU long levels: 1.2257, 1.2240, 1.2162, 1.2133, 1.2115, 1.2103, 1.2082, 1.2053, 1.2040

EU short levels: 1.2357, 1.2400, 1.2455, 1.2500, 1.2530


GU Analysis:

GU: Day- The candle is a large spread (137pips) bull wide-body spinning top closing on low vol<3days. The candle close and volume suggests more upside but with reduced buying pressure. Demand: Weekly/Daily:  1.5426, 1.5100 Supply: Short term: 1.5761, 1.5825, 1.5840, 1.5880, 1.5905 Background: The fundamentals remain unchanged and the USD strength exerted during last Friday's NFP data has resulted in lower lows. There is no significant demand level until 1.5500 - 1.4426 pivot. The current order book shows a significant bunch of volume trapped long with stops at 1.5670 - 1.5690, 1.5700 and demand appears to be at 1.5550, 1.5500. SM is likely to maintain buying pressure to the 1.5670 level or higher before reversing to fade to resume the downtrend. 

GU long levels: 1.5550, 1.5500, 1.5426, 1.5400 

GU short levels: 1.5680, 1.5700, 1.5730, 1.5762, 1.5785, 1.5800, 1.5825

Posted at 01.52 am EST