DAILY REVIEW 31 Oct 2013
EU: The Daily candle is a normal spread (89pips) bear narrow-body spinning top on high vol<1days. The candle close and volume suggests buying interest and a possible slowing of the selling momentum. The Asian range is 1.3688 – 1.3738 Yesterday I wrote “Levels of interest for a possible short before FOMC would be 1.3775 (price has rotated around this level several times) “ and FOMC price action yesterday saw SM spike up to grab stops to 1.3783 before reversing sharply downwards. SM is likely to create selling pressure from around the Asia high to induce even more shorts before fading these traders by reversing upward to confirm the buying that was started yesterday. A failure to close below 1.3650 will likely see price re-accumulate (or chop around) in a range for a few days before pushing back up to test supply levels again.
EU long levels: 1.3670, 1.3650 EU short levels: 1.3765, 1.3783, 1.3808, 1.3820, 1.3865, 1.3900


GU:  The Daily candle is a below-average spread (80pips) bear narrow-body spinning top closing on high vol<1days.The candle close and volume suggests buying and possible stalling for a move back up. The Asian range is 1.6004 – 1.6042. Yesterday’s price action saw SM pick up stops below the 1.6000 key level down to 1.5997 and although the daily close and volume suggests a slowing of the selling, price is nowhere near a significant demand level and is likely to push further downward to test the Fib38.2% @ 1.5940 confluence with daily ema50 @ 1.5932 Bearing in mind that the short orders sitting above are still very much for the taking by SM, news permitting.  SM is likely to create buying pressure before reversing downward to test the daily demand levels. 
GU long levels:  1.6000, 1.5920, 1.5900  GU short levels:  1.6065, 1.6100, 1.6120 (previous breakout level), 1.6142, 1.6200, 1.6220, 1.6259, 1.6325, 1.6353, 1.6380