DAILY REVIEW 2 Jan 2014

This is my first post of 2014. Once again, my best wishes to everyone for a Happy and Successful New Year. Time of post: EST 8.00 am

EU: Monthly- the candle is a small spread (369pips) bull closing nearly 1/3 off the high on low volume <2months. The candle close and volume suggests no demand. However, price in the monthly chart is in no man’s land and is not near monthly supply or demand levels.Weekly- the candle is a below-average spread (238pips) bull upthrust on low vol<63weeks and the candle close and volume suggests no demand. The Daily candle is a small spread (54pips) bear closing just ½ off the low on low vol<2days. The candle close and volume suggests no selling interest. However, price is also nowhere near weekly supply or demand levels and SM has actually used the very thin markets over the holiday period to clear stops above 1.3831 swing high of 25 Oct 2013, coming after the FOMC taper decision with lots of short positions being established. This suggests that supply at the 1.3800 level has been cleared so that events permitting, SM can push higher rapidly if necessary.  Levels of interest: Current swing high 1.3892, weekly supply approx 1.4200 – 1.4250 The Asian range is 1.3724 – 1.3774 SM is likely to continue the selling pressure to around 1.3624 level before reversing back upwards. 
EU long levels: 1.3620, 1.3600 EU short levels: 1.3818, 1.3892

GU: Monthly- the candle is a below-average spread (361pips) bull closing at the high with bearish volume divergence. The candle close suggests more upside but the volume indicates “no demand”. Weekly- the candle is a below-average spread (255pips) bull closing about 1/3 off the high on low vol<160weeks. The candle close and volume suggest no demand. The Daily candle is a normal spread (103pips) bull closing just off the high on vol<2days. The candle close and volume suggests no demand. However, price is not quite at the supply level yet to warrant a full reversal. SM has also taken stops above the previous swing highs after the FOMC taper. Levels of interest: Daily supply levels 1.6720, 1.6750 The Asian range is 1.6565 – 1.6602. SM is likely to maintain selling pressure to continue fading weak longs before reversing back upwards. 
GU long levels:  1.6435, 1.6400, 1.6320, 1.6270 GU short levels: 1.6617, 1.6720, 1.6750