DAILY REVIEW 28 Feb 2014
EU: The Daily candle is a near-normal spread (83pips) bull closing off the low on low vol>4days. The candle close and volume suggests more upside. Levels of interest: Demand: short term-  1.3684 – 1.3676, 1.3668 – 1.3654,  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 1.3693 – 1.3714 currently. SM has cleared supply above and continued the re-accumulation. SM will likely fade weak longs to around short term demand at 1.3685 or lower before they reverse northward.   Being the end of the month, month-end flows may come in and price may whipsaw somewhat as profits are booked and accounts squared. A close below 1.3642 would likely mean more downside.
EU long levels: 1.3685, 1.3668, 1.3590, 1.3585, 1.3559 EU short levels: 1.3800 – 1.3817

GU: The Daily candle is a near-normal spread (82pips) bull “hammer” closing just off the high on low vol>4days. The candle close and volume suggests selling and it is an SM bear trap being setup.  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- 1.6655, previous Asia low 1.6638, 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 1.6675 – 1.6697. SM likely to induce long breakout traders to the 1.6700 key level or higher, then reverse to build long positions by fading them to around the short term demand at 1.6650 – 1.6643 before reversing northwards. The orders look stacked and ready to go up.
GU long levels:  1.6655, 1.6645, 1.6638, 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 1.33 am EST