DAILY REVIEW 29 Nov 2013
EU: The Daily candle is a small spread (54pips) bull wide-bodied spinning top closing on very low vol<27days with daily bearish volume divergence. The candle close and volume suggests no buying interest. Levels of interest:  Daily Fib 61.8% @ 1.3622 Previous breakout level 1.3660 Daily Fib 78.6% @ 1.3715 confluence with H4 breakout level 1.3735, Daily Fib88.6% @ 1.3770 confluence with H4 supply level 1.3771 – 1.3790 The Asian range is 1.3599 – 1.3621 currently. Price has broken yesterday’s high with SM springing the bear trap mentioned yesterday trapping shorts and already removed lots of weak longs. Price has kissed the Fib 23.8% level and looks like it has stalled here with bearish volume divergence. Today being Friday and the last working day of the month means we can expect month-end flows. We have seen consecutive 3 days of rise since Tuesday this week and about 224pips from the swing low to current swing high. Thinking aloud, is it possible that SM is going to have a mid-week reversal today or even a full blown reversal? It looks like SM has established a new TR 1.3559 – 1.3621 from which to launch a fresh assault on the highs. SM is likely to create selling pressure to induce shorts and remove weak longs until around the 1.3580 or even 1.3564 level before reversing back upwards. 
EU long levels:  1.3580, 1.3564, 1.3557 EU short levels:  1.3625, 1.3700, 1.3723, 1.3780 


GU: The Daily candle is a near normal spread (80pips) bull wide-bodied spinning top closing on low vol<2days with daily bearish volume divergence. The candle close suggests selling and the volume suggests more upside. Price has broken yesterday’s high and the Asian range is 1.6330 – 1.6373 currently. Like EU, GU has also seen 3 consecutive days of rise with about 235pips from the swing low to swing high. With a new high in place and a likely continuation of higher prices to close out the month, SM is likely to maintain selling pressure to induce shorts as well as fade the weak longs to book profits then reverse upward to fade the new shorts and book in more profits to close out the day on a higher high.
GU long levels:  1.6320, 1.6300, 1.6276, 1.6240, 1.6209 GU short levels: 1.6380, 1.6418, 1.6452, 1.6527