DAILY REVIEW 22 Nov 2013
EU: The Daily candle is a normal spread (87pips) bull closing just off the high on high vol<1day. The candle close and volume suggests more upside. Prices barely moved  on strong US Home Sales yesterday and reversed on poor Philly news. Even talk of negative interest by ECB personnel barely moved the prices any lower, instead it closed way above Wednesday’s low smack in the middle of Wednesday’s price action. Even talk of US FED tapering failed to make any impact leaving us an “inside day” situation. It will be best to look at possible trading ranges-  TR1: 1.3498 – 1.3578 TR2: 1.3398 – 1.3498 Trap Zone: 1.3480 – 1.3504 (if you notice this gap has been used to trap traders long and short) Therefore any price close in H1/H4 above or below these trap levels would suggest either a long or short bias for the day. The Asian range is 1.3461 – 1.3485 currently. One analyst says “The trading crowd has grown less net-short from yesterday but further short since last week”. Especially after the ECB tape bomb, there will be a food chain for SM to gobble up northward as many traders will have jumped in on momentum thus not near the highs pre-announcement.  SM is likely to maintain the buying pressure to induce more shorts possibly to 1.3500 key level before reversing downwards to fade weak longs to possibly around 1.3447 before reversing upwards. 
EU long levels:  1.3461, 1.3447, 1.3419, 1.3400 EU short levels:  1.3500, 1.3540, 1.3578


GU: The Daily candle is a large spread (128pips) bull closing near the high on high vol<1days (BUT greater than the previous 68 days – Remember the perspective). The candle close and volume suggests more upside. Again, SM has used the news to accumulate inventory for the move north. The Asian range is 1.6175 – 1.6203 currently. Looking at the weekly chart, you will find that price has tested the supply zone around 1.6280 THREE times already. Since then, price has formed a trading range to absorb supply from between 1.5853 – 1.6259 Once price breaks and closes above 1.6259, the likely first target is 1.6500 hence I will look for shorts at the end of SM intraday cycles as short term trades and longs as longer term swing trades.
GU long levels:  1.6175, 1.6167, 1.6133, 1.6102  GU short levels: 1.6207 (short term only), 1.6255, 1.6290 – 1.6300, 1.6321, 1.6353, 1.6380