DAILY REVIEW 20 Feb 2014
EU: The Daily candle is a small spread (50pips) bear closing just off the low on low vol<1day. The candle close and volume suggests more downside. Levels of interest remain largely unchanged: Demand: short term-  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. Prices made a new low yesterday on the FOMC news and the risk aversion sentiment created. SM is likely to maintain selling pressure to around 1.3670 – 1.3657 before reversing upwards. A close below 1.3657 would likely mean more downside.
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 but based on price action and volume may hunt lower. Largely unchanged 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 1.6664 – 1.6688. SM cleared the TR 1.6653 – 1.6726 using news and reversed on FOMC and continued during Asia. SM is likely to maintain selling pressure to fade weak longs by pushing lower to possibly the 1.6000 level before reversing upwards to test the 1.6823 daily supply level as it appears that they are already accumulating in the current and may not go all the way down to 1.6570. 
GU long levels:  1.6598, 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 5.22 am EST