DAILY REVIEW 12 Feb 2014
EU: The Daily candle is a small spread (53pips) upthrust on low vol>1day with daily volume divergence. The candle close and volume suggests more downside. Levels of interest are unchanged: Demand: short term: 1.3600 – 1.3605 (confluence H1 ema200 and Friday Asia breakout), 1.3590 – 1.3584 (confluence H1 ema200, daily trend-line 1.3580), 1.3563 – 1.3550 Short term supply: 1.3684 – 1.3700. The Asian range is 1.3625 – 1.3646. SM used news yesterday to remove weak shorts at the short-term supply of 1.3682 and reversed for the longs in about a 50pips sweep. SM is likely to maintain selling pressure to remove remaining long breakout traders at 1.3590 or lower and reverse back upwards after restocking new inventory from the weak longs and continue the northward trek. 
EU long levels:  1.3590, 1.3585, 1.3559 EU short levels: 1.3678, 1.3695, 1.3800

GU: The Daily candle is a normal spread (94pips) bull closing about 1/3 off the high on low vol>1days with volume divergence. The candle close suggests selling and volume suggests there may be a commencement of re-accumulation. Unchanged Levels of interest: Short-term supply level 1.6487 – 1.6500 (confluence:  Fib 50% @ 1.6487), 1.6550 – 1.6560, 1.6600 – 1.6625, 1.6650 – 1.6667 Demand:  short-term 1.6401 – 1.6490 (confluence H1 ema200), 1.6354 (confluence Fib 23.6% and Friday Asia breakout), 1.6330 – 1.6320, 1.6300 key level
The Asian range is 1.6440 – 1.6474. SM continued to take out weak shorts and reversed at short term supply. SM have again removed weak short to the 1.6474 level and are now creating selling pressure to take out the weak longs (stragglers from NFP last week) as there may be some still not taken out yet. SM is likely to continue to remove weak longs by maintaining selling pressure to re-accumulation breakout level  1.6416 or lower to fade weak longs before reversing and resuming the journey north.
GU long levels:  1.6400, 1.6354, 1.6440, 1.6300 GU short levels:  1.6360, 1.6487, 1.6550, 1.6625, 1.6650, 1.6667

Posted at 3.03 am EST