DAILY REVIEW 17 Sep 2013
EU: The Daily candle is a small spread (55pips) bear inverted hammer closing just off the low on high vol>5days. The gap up yesterday that tested the daily supply levels toward 1.3400 is not closed. Volume has increased significantly and although the close suggests more downside, such volume activity should have seen even a much larger spread. This suggests that after having gapped through the trading range top at 1.3325, there is no reason yet for SM to close the gap. As I write, SM has begun to stall and move prices back upwards. Current Asia high is still below yesterday’s NY session low (breakout) about 1.3252 and this is a possible short term test level for SM to reverse to gather more shorts before reversing upwards to continue the buying pressure  to fade weak shorts probably by taking price to 28Aug high at 1.3397 and maybe break above to take breakout traders’ orders around the 1.3400 key level before reversing to bow to the impending expected FOMC tapering. With the FOMC later this week, I would expect SM to push further up before the anticipated QE “tapering” news possibly when prices are at or close to the supply levels. 
EU long levels:   1.3325, 1.3300, 1.3265, 1.3255  EU short levels:  1.3400, 1.3425, 1.3451, 1.3498, 1.3508, 1.3525


GU: The Daily candle is a below-average spread (68pips) bear with a pin toward the high but closing about just off the low on vol<3days with continuing bearish volume divergence. The gap up yesterday was not closed. SM looks to have absorbed the supply and reversed upward at the 161.8% Fib Ext @ 1.5895 which opens up the daily supply 1.6170 – 1.6180 and also 1.6360 – 1.6380 261.8% Fib Ext @ 1.6184 SM has created buying pressure to fade weak shorts and the first possible reversal level at 1.5930 to reverse start inducing shorts to accumulate before the push back up from Asia low. SM may take stops above the 1.6000 key level as it is almost a certain stop-hunt location for the fading of weak longs before a further push up. 
GU long levels: 1.5887, 1.5860, 1.5825  GU short levels:  1.5930, 1.6000, 1.6015, 1.6088, 1.6110, 1.6175