DAILY REVIEW 22 Oct 2013
EU: The Daily candle is a small spread (37pips) bear hammer closing on high vol<34ays. The daily candle close and volume suggests no selling pressure. The Asian range is 1.3661 – 1.3680 TR is unchanged at 1.3650 – 1.3703 with TRL 1.3650 – 1.3677 and TRU 1.3677 – 1.3703 Trader platform’s open positions show that the trading crowd has increased net short positions. The overdue release of the NFP due today will likely give SM the basis to take stops both ways. SM probable move would be to create buying pressure to fade weak shorts pre-NFP and induce breakout long traders before reversing downwards to fade them and depending on the level at which they were faded, reverse maybe about 50-75 pips lower to go back upward. If SM responds on the news with a straight push up all the way to test 1.3775 – 1.3791 we may have a possible reversal move down from supply instead. 
EU long levels  1.3640, 1.3600, 1.3585 EU short levels: 1.3715, 1.3775, 1.3800


GU: The Daily candle is a small spread (48pips) bear closing off the low on vol<4days.The candle close and volume suggests that there is no selling interest and the daily bearish volume divergence since Friday has been playing out. The Asian range is 1.6114 – 1.6146 There is no clear TR in the shorter TF at the moment and I’m using a rough guide of 1.6050 (Fib 50%) – 1.6146 (Asia High). Again, with the NFP news due, SM likely move will be to create buying pressure past Asia high to fade the weak shorts before they reverse to pick up long orders as the push up was significant and they will want to take out weak longs before any further move up in order to reload inventory. 
GU long levels:  1.6100, 1.6055, 1.6000, 1.5990 GU short levels 1.6180, 1.6200, 1.6223, 1.6240, 1.6259, 1.6320, 1.6353, 1.6380