DAILY REVIEW 6 Nov 2013
EU: The Daily candle is a below average spread (72pips) bear closing 2/3 off the low on below average vol>1day. The candle close and the volume suggests buying interest. It is likely that the yesterday’s low 1.3448 will be untested. Technicals: daily 38.2%Fib @1.35971 50%Fib @ 1.3612 The Asian range is 1.3467 – 1.3520 (still within yesterday’s high). SM is likely to create selling pressure after just failing to break yesterday’s high to fade weak longs and induce “low level” shorts, possibly to Asia low before reversing upwards for the expected retracement. The low level shorts are likely those who missed the large down-move and believe that getting a good price now will get them back in the “downtrend” since they are not selling at the absolute low. However if SM has held price above 1.3448 and never tested Friday’s low of 1.3441, it is likely that they have already a significant value of orders locked at that level and will not be releasing the trapped traders therefore a continuation of that downtrend is improbable. Possible manipulation level for potential reversal 1.3477 (breakout of congestion level), although a retest of 1.3460 – 1.3451 is possible.
EU long levels: 1.3477, 1.3451, 1.3441 EU short levels:  1.3545, 1.3597, 1.3620, 1.3650


GU:  The Daily candle is a large spread (114pips) bull closing off the high on below average vol>1day, the close and volume suggests more upside and it has already broken yesterday’s high. The Asian range is 1.6040 – 1.6094 The retracement upward has started, fuelled by yesterday’s good UK news. SM is likely to fade the weak longs and induce shorts by creating selling pressure as price tests the 1.6100 level before reversing back into the retracement northward. 
GU long levels:  1.6060, 1.6040, 1.6018, 1.6000  GU short levels:  1.6130, 1.6180, 1.6200