DAILY REVIEW 12 Sep 2013

EU: The Daily candle is a near-normal spread (80pips) bull off the high on below average vol>2days. The candle close and volume suggests more upside as price pushes towards the supply levels. SM is likely to create selling pressure to around 1.3280 to fade the weak longs before making a u-turn back up. The slew of Eurozone news will determine the extent of the moves.

EU long levels:   1.3280, 1.3250, 1.3233, 1.3211-20, 1.3200  EU short levels:  1.3323, 1.3338, 1.3375, 1.3400, 1.3425, 1.3451

GU: The Daily candle is a normal spread (110pips) bull closing near the high on vol>1day with continued bearish volume divergence. The close suggests more upside but the volume suggest no demand, however, with the range of the candle, we can expect more upside. Price is at the current daily supply but a further push to 1.5880 cannot be ruled out.  In this scenario, SM will probably fade the weak longs by creating selling pressure before reversing upwards. There is also bearish volume divergence on the H4 that has yet to be played out and if there is a drop from current levels, it may be a significant move.

GU long levels: 1.5700, 1.5680, 1.5665, 1.5640  GU short levels:  1.5820, 1.5920, 1.5950, 1.6000