DAILY REVIEW 14 Jan 2014
EU: The Daily candle is a small spread (48pips) bear hammer closing on average vol<3days. The hammer would suggest downside. However since price is not at a significant supply level, but only at the “creek” around 1.3675, in the short term, we expect to see downside but the candle close and volume in this instance suggests a lack of selling interest and possible continued upside. Levels of interest: Current swing high 1.3892, weekly supply approx 1.4200 – 1.4250 H4 ema200 @ 1.3649. TR: 1.3547 – 1.3675 The Asian range is 1.3648 – 1.3672 SM may maintain selling pressure to fade weak longs  and induce breakout shorts at Asia low or even to around the 1.3613 level or lower before reversing back up for the continuation.
EU long levels: 1.3633, 1.3630, 1.3613, 1.3595, 1.3579 EU short levels: 1.3686, 1.3818, 1.3892

GU: The Daily candle is a large spread (162pips) bear large body spinning top closing off the low on low vol<3days. The candle close and volume suggests no selling pressure. With the slew of UK news out today, we can expect SM to move and position price against the expected direction. Levels of interest: Daily supply levels 1.6720, 1.6750 Short-term supply level 1.6450 – 1.6470 The Asian range is 1.6366 – 1.6404 SM is likely to maintain buying pressure to around 1.6432 level to fade the weak shorts before reversing to test yesterday’s low. A close below 1.6346 will likely give more downside.
GU long levels:  1.6358, 1.6346, 1.6315 GU short levels:  1.6432, 1.6455, 1.6500