DAILY REVIEW 14 April 2016
  

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 and January's candle is an "inside" of the December candle while February's candle also closed back inside the January range. 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 an above average spread (589pips) bull closing at the high on low vol<1month. The candle close and volume suggests more upside.  

WEEK- The candle is a below average spread (127pips) doji closing on low vol<1week. The candle close and volume suggests absorption of selling. 

DAY- The candle is an above average spread (123pips) bear closing at the clow on high vol>3days. The candle close and volume suggests more downside. 

Levels of interest: Demand: Daily/Weekly:  1.0000  

Background: The FOMC Minutes release put in a nutshell simply says, "we want to raise rates but we won't tell you until we see more supporting data"..... This has led to continued USD weakness and will continue to do so.

Oanda order book:  Trapped short volumes significant but there is trapped long volume also in play from around the 1.1400 key level.

Potential demand stacks:  1.1231-1.1197, 1.1153-1.1140

Potential supply stacks: not applicable

Potential long (trapped) stops:  1.1321-1.1311
Potential short (trapped) stops: 1.1275-1.1282, 1.1500-1.1605,1.1622-1.1635, 1.1670-1.1680

With the Euro data already released, the US data later will drive the market. SM is likely fade weak shorts to the 1.1300 key level or higher before reversing. 

EU long levels: 1.1206, 1.1150

EU short levels: 1.1300, 1.1400, 1.1420, 1.1450, 1.1494-1.1505, 1.1527-1.1540, 1.1600, 1.1619-1.1630, 1.1711

GU Analysis:

GU: Perspective: GU has closed below April pivot 1.4564. The June close of 1.5701 becomes important as a supply level to overcome for higher prices. The downward bias is still dominant. 

MONTH-  The candle is an above average spread (610pips) bull closing off the high on low vol<1month. The candle close and volume suggests more upside.

WEEK- The candle is a below average spread (316pips) bear spinning top closing on low vol>2weeks. The candle close and volume suggests more downside.
DAY- The candle is a below average spread (86pips) bear closing at the low on high vol>3days. The candle close and volume suggests more downside.

Demand: Weekly/Daily:  1.3705-1.3500 Supply: Short term: 1.5574, 1.5600, 1.5619 

The Oanda order book: Volume remains thin and with profitable and trapped short volumes.

Potential demand stacks: not significant
Potential supply stacks: 1.4400-1.4410

Potential long (trapped) stops:  1.4090-1.4070

Potential short (trapped) stops: 1.4165-1.4190, 1.4200-1.4241, 1.4250-1.4261, 1.4280-1.4290,  1.4335-1.4365

The UK interest rate will be the catalyst today. SM is likely to continue fading weak shorts to retest the 1.4200 key level or higher before reversing.

GU long levels:  1.4080-1.4060, 1.4050, 1.4000-1.3990

GU short levels: 1.4200, 1.4245, 1.4260, 1.4292-1.4300, 1.4317, 1.4342-1.4350, 1.4365-1.5385, 1.4400-1.4410, 1.4450-1.4460, 1.4485, 1.4515, 1.4600

Posted at 6.04 am EST