DAILY REVIEW 21 January 2015

EU Analysis:

EU: Daily- The candle is a below average spread (74pips) bear closing at the low on vol<5days. The candle close and volume suggests more downside.   
Levels of interest: Demand: Daily/Weekly:  1.1376, 1.0762  

Background: The Euro remains weak. The coming Greek election this weekend may prove significant. Any long position is counter-trend and "corrective" as the technical trend is still down.

Prices yesterday was pretty much an "inside day" of last Friday. The next significant possible demand level is weekly level at 1.1376 and after that, 1.0762 Based on the Oanda order book, trapped shorts exist from 1.1567 with possible stops at 1.1640, 1.1650-60. Possible fresh "demand" is at 1.1510-1.1520 and 1.1490-1.5000 SM is likely to continue creating selling pressure to around yesterday's low 1.1539 or lower before reversing to resume the "corrective" move. The long term trend bias remains short.

EU long levels: 1.1510, 1.1490, 1.1458, 1.0762

EU short levels: 1.1650, 1.1722, 1.1790, 1.1850


GU Analysis:

GU: Day- The candle is a very large spread (142pips) spinning top closing on low vol<5days. 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: The potential UK leadership continuity issues with forthcoming elections and the poor economic performance continue to weigh heavily on the GBP. The UK data and MPC minutes today will be instrumental in positioning the GBP.

From the Oanda order book, there are possible short stops located around 1.5200, 1.5270, 1.5300 and possible long stops from around 1.5000 - 1.5030 No clearly significant supply order stacks but there are some at 1.5400 and 1.5500 SM is likely to create selling pressure to Asia low at 1.5134 or lower before reversing for a "corrective" move upward.

GU long levels: 1.5130, 1.5100, 1.5030, 1.5000, 1.4938, 1.4870, 1.4812 

GU short levels: 1.5270, 1.5300, 1.5345, 1.5400, 1.5470, 1.5500, 1.5540, 1.5600

Posted at 3.14 am EST