DAILY REVIEW 4 January 2016

Hi friends,
Wishing everyone a Happy New Year 2016! My computer was down again last week and I could not post anything. At the moment, my browsers have slowed down again even with the new network settings. I'm still tweaking to get it back to normal speeds. In the meantime, owing to the very slow loading, I will only do analysis for one pair at the moment.
Regards
Trek Trader 

EU Analysis:

EU: Perspective: Price has tested and broken through the 1.0500 which is simply a monthly low and psychological level with the next pyschological level at 1.0000 and the 0.9900 level being the breakout retest of a reaccumulation structure. December's candle suggests a retracement is in progress. We also note that there are no significant orders/ stops lower until the 1.0000 key level. Bias is still strongly down from a market structure perspective.    

MONTH- The candle is a below average spread (541pips) bull closing 1/3 off the high on low vol>2months. The candle close and volume suggests more upside. 

WEEK- The candle is a small spread (139pips) bear closing near the low on low vol<51weeks. The candle close suggests more downside. 

DAY- The candle is a normal spread (84pips) bear closing at the low on low vol<2days. The candle close suggests more downside. 

Levels of interest: Demand: Daily/Weekly:  1.0000  

Background: The first trading day of 2016 is here! There will be some key data out today that will help to position prices.  

The Oanda order book shows significant net trapped short positions. 

Potential demand stacks:  1.0800-1.0789, 1.0700-1.0690, 1.0677-1.0664

Potential supply stacks: N.A.

Potential long (trapped) stops:  N.A. 
Potential short (trapped) stops: 1.0903-1.0917, 1.0941-1.0950, 1.0990-1.1017, 1.1066-1.1076, 1.1151-1.1160 

There is both Euro and US data release later. SM is likely to continue upward pressure to around the 1.0922 level or higher before reversing. 

EU long levels: 1.0800-1.0795, 1.0762-1.0740, 1.0700  

EU short levels: 1.0927, 1.0950, 1.1060, 1.1105, 1.1208

Posted at 2.30 am EST