DAILY REVIEW 26 Sep 2013

EU: The Daily candle is a below average spread (76pips) bull closing off the high on low vol<5days which indicates no buying pressure. Broker platforms continue much the same with short positions dominant. The candle close suggests more upside but the volume is indicative of a typical SM mark-up, not high so as not to attract attention and to deceive. As I write, the Asian range is 1.3511 – 1.3530, the likely SM move will be to create buying pressure to fade weak short and induce longs, then reverse downward to remove weak longs, then reverse again upward in a push to test 1.3555 and higher.

EU long levels:   1.3490, 1.3450, 1.3382, 1.3348  EU short levels:  1.3555, 1.3575, 1.3600, 1.3655, 1.3700, 1.3715

GU: The Daily candle is a normal spread (109pips) bull closing near the high on below-average vol<5days which suggests no buying pressure. The candle close suggests more upside and broker platforms continue to show that traders are still net-short. The Asian range is 1.6022 – 1.6085, SM has broken the Asia high to induce breakout traders but is likely to reverse downward and induce more shorts while fading the longs to around 1.6045 or lower before reversing to push up again to test 1.6100 and higher.

GU long levels:  1.6045, 1.6000, 1.5985, 1.5955, 1.5922, 1.5905  GU short levels:  1.6022, 1.6071, 1.6105, 1.6148, 1.6162, 1.6175, 1.6200