DAILY REVIEW 15 January 2015

Today's review is a bit late as I was helping a friend with some personal issues and wow, what a blockbuster action caused by the SNB's decision to abandon the 1.2000 floor.

EU Analysis:

EU: Daily- The candle is a normal spread (118pips) bull small body spinning top closing on very high vol>17days. The candle close and volume suggests buying but the supporting pivot 1.1753 had already been cleared meaning no more possible demand at that level, nevertheless, it does suggest that an upside is possible. (This is the analysis before the SNB blockbuster decision).

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. The decision by the SNB to stop defending the 

Prices tanked on the SNB decision and there are no significant short term supply/demand levels. Possible long levels and short levels remain the same at the moment. Having cleared all the stops to 1.1564, there are no orders stacks below and the most significant ones are above. SM is like to push prices back to the previous pivot low of 1.1639 or lower 1.1600 before reversing back upwards for a corrective move. 

EU long levels: 1.1700, 1.1639, 1.1600

EU short levels: 1.1810, 1.1900, 1.2025, 1.2150, 1.2205, 1.2260, 1.2300


GU Analysis:

GU: Day- The candle is a large spread (123pips) bull closing just off the high on ultrahigh vol>17days. 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 sentiment weak.  

Prices tanked on the SNB decision but prices held and is poised to go higher as analyzed. SM is has induced shorts and price is now retracing, they are likely to maintain selling pressure to the 1.5200 key level or lower before reversing back up. The longer bias is DOWN and any long position with the SM cycle is corrective and temporary.

GU long levels: 1.5188, 1.5165, 1.5123, 1.5100, 1.5080, 1.5030, 1.5000, 1.4938, 1.4870, 1.4812 

GU short levels: 1.5275, 1.5325, 1.5400, 1.5470, 1.5500, 1.5540, 1.5600

Posted at 7.35 am EST