DAILY REVIEW 19 Feb 2014
EU: The Daily candle is a below average spread (75pips) bull closing near the high on low vol>2days with continued daily volume divergence. The candle close and volume suggests more upside. Levels of interest remain unchanged: Demand: short term- 1.3672 (Friday Asia low), 1.3600 – 1.3605 (Friday Asia breakout), 1.3590 – 1.3584 (daily trend-line 1.3580), 1.3563 – 1.3550 Supply: 1.3787 – 1.3818. The Asian range is 1.3756 – 1.3772 currently. Yesterday, I wrote “SM is likely to breakout long and continue the northward journey”.  SM is likely to continue buying pressure to take out weak shorts and test the 1.3800 – 1.3818 level  before reversing back down for the “reversal” which is likely to be a restock of inventory for another push back up. Therefore another break and close above 1.3820 will mean more upside to the 1.3900 level.
EU long levels:  1.3672, 1.3590, 1.3585, 1.3559 EU short levels: 1.3800

GU: The Daily candle is a below average spread (86pips) bear spinning top on low vol>2days. The candle close and volume suggests a commencement of re-accumulation. Unchanged Levels of interest: Short-term. Levels of interest: Weekly/Daily supply level 1.6835 – 1.6845, 1.6860 – 1.6875, 1.6991 – 1.7015, 1.7025 – 1.7045 Demand:  short-term 1.6643 – 1.6221, 1.6573 – 1.6555, 1.6514 – 1.6533, 1.6401 – 1.6490, 1.6354, 1.6330 – 1.6320, 1.6300 key level. The Asian range is 1.6677 – 1.6693 currently. SM is likely to create selling pressure to fade weak longs by pushing lower to possibly the 1.6640 level before reversing upwards to test the 1.6823 daily supply level as it appears that they are already accumulating in the current TR 1.6653 – 1.6726 and may not go all the way down to the the 1.6570. 
GU long levels:  1.6640, 1.6600, 1.6575, 1.6514, 1.6400, 1.6354, 1.6440, 1.6300 GU short levels:  1.6823, 1.6835, 1.6860, 1.7000, 1.7030

Posted at 1.42 am EST