DAILY REVIEW 20 Nov 2013
EU: The Daily candle is a below average spread (60pips) bull closing just off the high on below average vol>2days. The candle close and increasing volume suggests more upside. Levels of interest: Previous Week High 1.3546. TR1 (1.3460 – 1.3550) 61.8%Fib @ 1.3625 confluence with Previous breakout level 1.3650 Price has broken above the congestion breakout high of 1.3550 overnight as SM cleared stops above the 50%Fib (1.3558) and induced Fib traders short. The Asian range is 1.3532 – 1.3578 currently.  SM is likely to maintain the selling pressure to fade the weak longs and test the 1.3533 level or a bit lower before reversing upwards. If price falls and H1/H4 closes below 1.3474, we can expect more downside.
EU long levels: 1.3532, 1.3520, 1.3508 EU short levels:  1.3578, 1.3600, 1.3625, 1.3650, 1.3700


GU: The Daily candle is a below average spread (73pips) bull hammer closing off the high on average vol>2days. The candle close and volume suggests selling into the candle and more downside. However, with the weekly price action in the background, the re-accumulation of orders by SM yesterday right down to 1.6058 and the current level suggests that the hammer may be a short trap. The Asian range is 1.6102 – 1.6142 currently. SM will be likely to build buying pressure to maybe spike 1.6147 to induce longs before reversing down to retest 1.6102 and reversing back again to fade weak shorts.  With price still in no-man’s land, a H1/H4 close below 1.6102 will likely mean more downside and the possibility of a mid-week reversal.
GU long levels:  1.6072, 1.6045, 1.6020, 1.6000  GU short levels: 1.6147, 1.6180, 1.6200, 1.6220, 1.6240, 1.6259