DAILY REVIEW 24 Feb 2014
EU: Weekly- the candle is a small spread (87pips) bull spinning top closing on low vol<6weeks. The candle close and volume suggests “no demand”. The Daily candle is a small spread (56pips) bull spinning top closing on low vol<3days. It is a “no demand candle but the candle close suggests selling and the volume suggests a SM markup/bear trap. Levels of interest: Demand: short term-  1.3692 – 1.3715,  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. Last week, I wrote “The move is on increased volume and suggests that re-stocking for the push north has already commenced.” SM actually did a clean-out of weak longs on Friday. SM is likely to fade weak shorts up to the 1.3770 level before reversing to Asia low or around the 1.3720 level before heading back north.   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 – 1.3817

GU: Weekly- the candle is below-average bear closing at the low on low vol<4weeks with weekly volume divergence. The candle close and volume suggests more downside. The Daily candle is a normal spread (113pips) bear upthrust closing on low vol<1day. The candle close and volume suggests more downside.  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 short-term supply: 1.6700 – 1.6724 Demand:  short-term 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 1.6613 – 1.6650. SM has already taken stops below the 1.6700 key level . SM is likely to test the short term supply at 1.6700 – 1.6724 before reversing to the 1.6700 and lower if a reversal is in place. Alternatively, a break past 1.6724 will see a test of the 1.6823 daily supply level. 
GU long levels:  1.6575, 1.6514, 1.6400, 1.6354, 1.6440, 1.6300 GU short levels:  1.6722 1.6823, 1.6835, 1.6860, 1.7000, 1.7030

Posted at 4.02 am EST