DAILY REVIEW 03 Dec 2013
EU: The Daily candle is a normal spread (90pips) bear closing nearly 1/3 off the low on average vol>2days. The candle close and volume suggests buying into the candle as price reached the daily ema50 @ 1.3515 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 Price has continued to hold and the Asian range is 1.3523 – 1.3552 currently. SM has dropped yesterday and likely have most traders thinking short, SM is likely to test the NY session high 1.3559 and reverse creating selling pressure to induce shorts before reversing back up around 1.3515 or 1.3504. A H1/H4 close below 1.3498 may see more downside.
EU long levels:  1.3515, 1.3504 EU short levels:  1.3559, 1.3625, 1.3700, 1.3723, 1.3780 


GU: The Daily candle is a normal spread (100pips) bear upthrust closing on average vol>6days with daily bearish volume divergence. The candle close and volume suggests selling into the candle. 
The Asian range is 1.6345 – 1.6383 currently. As expected, SM did reverse downwards after taking out the weak shorts and as mentioned yesterday the current GU swing is also now about just over 300pips. Since SM did not retest the high of 1.6441 yesterday, some of the possibilities: 1)SM tests near the session highs yesterday (1.6395, 1.6423) or yesterday’s high and then reverses to create selling pressure to fade weak longs before reversing up again. 2)SM breaks yesterday’s high and tests the 1.6452 level then reverses for a possible deep retracement, maybe a mid-week reversal.  
GU long levels:  1.6341, 1.6320, 1.6300, 1.6276, 1.6240, 1.6209 GU short levels: 1.6395, 1.6423, 1.6441, 1.6452, 1.6527