DAILY REVIEW 28 Oct 2013
EU: Weekly: the candle is a below-average spread (181pips) bull wide-body spinning top closing off the highs on low vol<3days with bearish volume divergence visible. The Daily candle is a below-average spread (58pips) doji with equal up/down wicks on vol<1days with continued bearish volume divergence. 
Price opened with a small gap up and the Asian range is 1.3799 – 1.3817 Nothing has changed from last week as price remains within the daily congestion level approximately 1.3741 – 1.3866 The month high 1.3870 (Nov 2011) is significant. Broker platforms continue to show open short positions at an extreme. We also have a weekly and daily bearish volume divergence in place now so we can expect to see indicative “topping” price action soon. SM is likely to create selling pressure to induce even more shorts before reversing upward possibly to around the month high of 1.3860 - 1.3880 to take stops and drop for a reversal. A H1 close below the TR low of 1.3741 will likely see more downside. 
EU long levels: 1.3778, 1.3763, 1.3743 EU short levels: 1.3865, 1.3900


GU: Weekly: the candle is a small spread (141pips) bear small-body spinning top closing on low vol<1week.  The Daily candle is a normal spread (96pips) bear closing near the low on average vol<1day.The candle close and volume suggests that there no selling interest. Market opened with a small gap up and has cince closed. The Asian range is 1.6166 – 1.6188. Broker platforms also reveal that open short positions have increased. As the food chain continues to be to the north, potential supply is at 1.6300 key level, 1.6330 and 1.6380 (swing high 2 Jan 2013) Probable SM move will be to create buying pressure to about the 1.62000 key level and then reverse back downward to accumulate orders for the long before reversing to test the highs. 
GU long levels:  1.6166, 1.6150, 1.6137  GU short levels:  1.6200, 1.6220 (London possibly), 1.6259, 1.6325, 1.6353, 1.6380