DAILY REVIEW 13 Dec 2013
EU: The Daily candle is a below-average spread (66pips) bear wide-body spinning top closing on low vol>3days. The candle close and volume suggests possible commencement of buying. Levels of interest: Daily/Weekly swing high 1.3831 Test of Daily breakout level 1.3868 25Oct2013 The Asian range is 1.3741 – 1.3759 currently. Yesterday saw prices push to the key 1.3800 level without testing the 1.3831 swing high. Subsequently, prices tanked when news of RBA calling for AU at 0.8500 triggered a strengthening of the USD and EU fell with mixed US news of poor employment figures and good Retail Sales. Whilst it is possible that a mid-week reversal has begun at the 1.3800 level, it could be only a retracement in the bigger scheme of things as SM loads up again at the lows for a push to 1.3831 which is still well within reach. SM is likely to create selling pressure to test the yesterday’s low or lower and then reverse upwards to fade the weak shorts to test the higher supply levels.
 EU long levels: 1.3736, 1.3720, 1.3695, 1.3650, 1.3620, 1.3600 EU short levels:  1.3775, 1.3800, 1.3830, 1.3870, 1.3895

GU: The Daily candle is a normal spread (98pips) bear spinning top closing on low vol>3days. The candle close and volume suggests that there is buying into the candle. Levels of interest: H4/daily supply levels: 1.6524 – 1.6533, 1.6555 – 1.6571, 1.6600 – 1.6620, breakout level 1.6480 Yesterday SM did as expected to test close to 1.6420 and then stalled at the 1.6320 which is still holding. The Asian range is 1.6331 – 1.6359 currently. SM is likely to maintain selling pressure to test yesterday’s low and reverse upward to test 1.6480 and higher. 
GU long levels:  1.6320, 1.6290 GU short levels: 1.6420, 1.6480, 1.6500, 1.6533, 1.6580, 1.6600, 1.6620, 1.6660, 1.6735, 1.6750

Note: With FOMC expected next week and today being Friday with not much significant news events, SM may not really move prices all that much until very late in order to trap traders going into the weekend.