DAILY REVIEW 13 Jan 2014
EU: Weekly- the candle is a a small spread (139pips) bull closing off the high on high volume>4weeks. The candle close and volume suggests more upside. The Daily candle is a normal spread (118pips) bull closing off the high on high vol<2days. The candle close and volume suggests possible continued upside. Absorption volume is observed in the H4 charts where supply has been absorbed and we look for the continuation trade long. Levels of interest: Current swing high 1.3892, weekly supply approx 1.4200 – 1.4250 H4 ema200 @ 1.3648. Price has broken out of the TR: 1.3547 – 1.3675 and is now open for a test of the supply levels from 1.3816 – 1.3892 Note also that the said range up to 1.3892 was when SM took out a lot of stops during thin trading during the year-end holidays and so there may not real supply until 1.4200 and higher.  The Asian range is 1.3661 – 1.3684 currently. SM is likely to maintain buying pressure to commit breakout traders long at the retest or spike of Friday’s high and reverse to fade weak longs to around the 1.3641 or lower before reversing back up for the continuation. 
EU long levels: 1.3641, 1.3624, 1.3613, 1.3595, 1.3579 EU short levels: 1.3686, 1.3818, 1.3892

GU: Weekly- the candle is a below average spread (179pips) bull closing off the high on average vol>2weeks. The close and volume suggest more upside. The Daily candle is a large spread (138pips) bear pin closing almost 100pips off the low on average vol>1day. The candle close and volume suggests a reload of long positions by SM. Absorption volume can also be seen in the H4 charts where supply has been absorbed and we look for the continuation trade long. Levels of interest: Daily supply levels 1.6720, 1.6750 Short-term demand  1.6420 – 1.6410 approximately. The Asian range is 1.6474 – 1.6507 currently. SM is likely to maintain buying pressure and reverse at Asia high or the retest of Friday high to fade weak longs to around 1.6475 or perhaps lower (bearing in mind it depends on how the orders are really stacked up since these are all manipulation levels) before reversing back up for the continuation.
GU long levels:  1.6474, 1.6450, 1.6418, 1.6400, 1.6375 GU short levels:  1.6600, 1.6617, 1.6724, 1.6750