DAILY REVIEW 16 Jan 2014
EU: The Daily candle is a normal spread (100pips) bear closing about ¼ off the low on average vol>1day. The candle close and volume suggests possible downside test. 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 Short-term supply: 1.3644 (confluence with H1 ema200 @ 1.3642) H1 ema200 @ 1.3628 (confluence with yesterday’s Asia session low breakout level) The Asian range is 1.3585 – 1.3623 currently. US News yesterday and the usually dovish Chicago FED Chairman Evan’s hawkishness on the need to adjust the pace of QE taper fueled USD strength resulting in EU retracing almost to within 17pips of last Friday’s NFP spike low. SM is likely to maintain buying pressure to test the 1.3628 breakout level or 1.3642 before reversing back down to test the key level 1.3600 (test of spring at possible LPS) or even the low before reversing upwards. A H1 close below yesterday’s low will see a test of the 1.3568 level and may mean more downside.  
EU long levels: 1.3600, 1.3590, 1.3570, 1.3547 EU short levels: 1.3644, 1.3684, 1.3818, 1.3892

GU: The Daily candle is a normal spread (121pips) bear closing 2/5 off the low on average vol>4days. The candle close and volume suggests commencement of buying. Levels of interest: Short-term supply level 1.6450 – 1.6470 M15 ema200 1.6392 confluence with yesterday’s Asia low breakout 1.6395 Current Asia high 1.6378 The Asian range is 1.6345 – 1.6378 currently. SM is likely to maintain selling pressure to test yesterday’s low at 1.6320 before reversing to test 1.6378 or even 1.6400 key level before reversing downwards. A H1 close above 1.6400 will likely give more upside.
GU long levels:  1.6320, 1.6300, 1.6280 GU short levels:  1.6378, 1.6400, 1.6463, 1.6500