DAILY REVIEW 17 Jan 2014

EU: The Daily candle is a below average spread (66pips) bull spinning top closing about 1/3 off the high on average vol>3days. 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 H4 ema200 @ 1.3645) H1 ema200 @ 1.3628 (confluence with yesterday’s Asia session low breakout level) The Asian range is 1.3593 – 1.3620. SM is likely to maintain selling pressure to test the Asia low or 1.3580 before reversing back up to test the 1.3644 level. A H1 close below 1.3568 may mean more downside.  

EU long levels:  1.3590, 1.3577, 1.3568, 1.3547 EU short levels: 1.3644, 1.3684, 1.3818, 1.3892

GU: The Daily candle is a normal spread (68pips) bear closing 2/5 off the low on average vol<1day. 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 1.6316 – 1.6457. The good UK news released has resulted in Gbp strength, the spike range of 150pips in GU will give some nice retracement profit taking by SM later.

GU long levels:  1.6320, 1.6300, 1.6280 GU short levels:  1.6463, 1.6500

Posted at 5.45 am EST