DAILY REVIEW 15 Jan 2014
EU: The Daily candle is a small spread (50pips) bull small-body spinning top closing on average vol<4days. The candle close and volume suggest no demand as price broke above the previous day’s high but closed significantly off the high. Levels of interest: Current swing high 1.3892, weekly supply approx 1.4200 – 1.4250 Key level 1.3600 Short-term demand 1.3585 TR: 1.3547 – 1.3675 The Asian range is 1.3626 – 1.3680 currently. SM moved prices down further fading weak longs from the NFP release last Friday on comments from the hawkish comments of FED member Richard Fischer calling for a sharper and quicker QE taper further fueled by the dollar gaining in the wake of surprising “strength” in U.S. consumer spending. SM is likely to maintain selling pressure to test the 1.3600 key level or even to the spring at 1.3585 before reversing back up for the continuation. Note that yesterday saw the FED hawks speaking, today we will have the dovish Chicago FED Chairman Evans speaking so just enjoy the ride and pips.
EU long levels: 1.3626, 1.3595, 1.3579, 1.3560, 1.3547 EU short levels: 1.3684, 1.3818, 1.3892

GU: The Daily candle is a normal spread (97pips) bull closing off the high on average vol>1day. 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: Short-term supply level 1.6450 – 1.6470 H4 ema200 1.6359 confluence with yesterday’s low 1.6366 The Asian range is 1.6394 – 1.6441 currently. SM is likely to maintain selling pressure to test yesterday’s low before reversing to test yesterday’s low or even the current swing low of 1.6345 before reversing upwards. A close below 1.6346 will likely give more downside.
GU long levels:  1.6358, 1.6346, 1.6315 GU short levels:  1.6463, 1.6500