DAILY REVIEW 24 Oct 2013
EU: The Daily candle is a small spread (52pips) bear almost-dragonfly doji closing off the low on vol>3days with continued bearish volume divergence. The close and volume suggests possible topping out. Price remains in the same level as yesterday i.e. daily congestion level approximately 1.3766 – 1.3866 Of significance is month high 1.3870 (Nov 2011) The Asian range is 1.3773 – 1.3787 at the moment. TR is 1.3726 – 1.3792 As anticipated, SM faded a lot of weak longs yesterday and after that reversed and retested the high and made a new high. SM is likely to be eyeing orders above the 1.3800 key level to load inventory before reversing downward. A continued daily bearish volume divergence is in place and may give a possible reversal. A H1 close below the TR low of 1.3726 may see more downside.
EU long levels: 1.3773, 1.3743, 1.3726 (pre-London, London) EU short levels: 1.3792, 1.3800, 1.3860


GU: The Daily candle is a large spread (137pips) bear closing about ¼ off the low on vol>3days.The candle close and volume suggests that there was buying into the candle so further upside to test the week high and possibly even higher prices may still be possible. The Asian range is 1.6161 – 1.6201 (and still going). SM took out many weak longs in one move yesterday wiping out all the NFP long traders who did not take profits and the likely SM move today is to fade weak shorts through London retest the day high at least. The possible levels where price might pause and reverse could be 1.6226 (breakout), 1.6247 (Tue high), 1.6255 (yesterday’s high).  Broker platforms report that net-short positions in this pair have increased which means the food chain for SM is upward.  If price breaks the high, potential supply is at 1.6300 key level, 1.6330 and 1.6380 (swing high 2 Jan 2013) 
GU long levels:  1.6161, 1.6118  GU short levels:  1.6226, 1.6247, 1.6255, 1.6325, 1.6353, 1.6380