DAILY REVIEW 21 Feb 2014
EU: The Daily candle is a below average spread (77pips) bear spinning top closing on low vol>3days. The candle close and volume suggests buying. Levels of interest remain 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 1.3713 – 1.3724 currently. Prices made a new low yesterday taking out any weak longs from Monday after closing past the gap close of Friday at 1.3692 down to 1.3685 removing any longs remaining for the  current week. The move is on increased volume and suggests that re-stocking for the push north has already commenced. SM is likely to maintain selling pressure to around 1.3695 or test the yesterday low at 1.3685 before reversing upwards. A close below 1.3672 would likely mean more downside.
EU long levels:  1.3685, 1.3590, 1.3585, 1.3559 EU short levels: 1.3800

GU: The Daily candle is a below average spread (75pips) bear spinning top on low vol>1day. The candle close and volume suggests a possible commencement of re-accumulation but based on price action and volume may hunt lower with the upcoming UK news. 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 – 1.6671. SM is likely to maintain selling pressure to fade weak longs by testing yesterday’s low or around the 1.6700 key level  before reversing upwards to test the 1.6823 daily supply level.. 
GU long levels:  1.6700, 1.6623, 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 4.10 am EST