DAILY REVIEW 13 January 2015

EU Analysis:

EU: Daily- The candle is a normal spread (84pips) bear "hanging man" closing on high vol<1day. The candle close and volume suggests more upside. 

Levels of interest: Demand: Daily/Weekly:  1.1639 Supply: short-term: 1.2150, 1.2205, 1.2260, 1.2300, 1.2356, 1.2375, 1.2425, 1.2500, 1.2530, 1.2600 

Background: The fundamentals of the Euro remains weak and the fact that Goldman Sachs recently called parity by year-end only adds to the already bearish sentiment. Needless to say, the anticipated ECB sovereign QE later this month also adds to the pressure.

Prices pushed to 1.1859 in Asia before falling away, short of yesterday's high of 1.1870 However, prices have not really lifted off yet. Based on the order book, there is a significant volume of traders trapped short below the 1.1830 level. Possible short stop orders are at 1.1870-80, 1.1900, 1.1950, 1.2000 and possible long take profits at 1.1900 and 1.2000 The "fresh" demand orders stacks at remain at 1.1760- 1.1775 SM is likely to create selling pressure to the 1.1785 pivot or lower before resuming the "corrective" move back long. However, any break and close below the current low will negate the analysis.

EU long levels: 1.1780, 1.1750, 1.1725, 1.1639

EU short levels: 1.1900, 1.2025, 1.2150, 1.2205, 1.2260, 1.2300


GU Analysis:

GU: Day- The candle is a normal spread (94pips) bear "hanging man" closing on low vol<1day. The candle close and volume suggests more upside.

Demand: Weekly/Daily:  1.4870 - 1.4812, 1.4229 Supply: Short term: 1.5400, 1.5470, 1.5500, 1.5540, 1.5600 

Background: Poor economic performance in the UK and political uncertainty keeps the GBP weak.  

Prices pushed to within a whisker of yesterday's high of 1.5192 reaching 1.5190 in Asia before retracing. There is no demand level to trade from until the 1.4850 level to the 1.4812 pivot. There are no significant order stacks till 1.4990 - 1.5000 The order book shows a significant volume of traders trapped short. SM is likely to maintain selling pressure to around the 1.5123 or lower before resuming the upward move to around the 1.5200 key level where there are both stops and fresh breakout orders for a possible stall and reverse.  The longer bias is DOWN and any long position with the SM cycle is corrective and temporary.

GU long levels: , 1.5123, 1.5100, 1.5080, 1.5030, 1.5000, 1.4938, 1.4870, 1.4812 

GU short levels: 1.5200, 1.5230, 1.5400, 1.5470, 1.5500, 1.5540, 1.5600

Posted at 1.45 am EST