DAILY REVIEW 3 Feb 2014
EU: Monthly – the candle is a regular spread (296pips) bear closing just off the low on vol>5 months. The candle close and volume suggests more downside. Weekly- the candle is a above-average spread (237pips) bear closing just off the low on very high vol>25weeks.  The candle close and volume suggests more downside. The Daily candle is a normal spread (94pips) bear on very high vol>1day with continued bullish divergence. The combination of the candle close and volume suggests more downside can be expected but the downward momentum may be slowing. Levels of interest: Daily Demand: 1.3405 – 1.3398, 1.3355 – 1.3344, 1.3318 – 1.3294 Short term supply: 1.3535, 1.3550, 1.3655 – 1.3665. Last Thursday I wrote” EU is in a technical uptrend but a H1 close below 1.3500 may mean more downside but is unlikely.”  Since then, EU has broken and closed below the 1.3500 level. It could be a host of reasons but that reinforces the discipline of only trading at the right levels with setups no matter what our bias may be. Prices opened with a small gap down that has since been closed and trading in a tight range. The Asian range is 1.3479 – 1.3494 currently. Technically EU looks to still be in an uptrend on the weekly and monthly chart. However, the daily technical uptrend looks to have been compromised and price may test the daily ema200 @ 1.3424 which has confluence with the daily demand level just below at around 1.3405. SM looks to have absorbed demand for the past 6 days and would be likely to fade weak shorts before proceeding further down. If SM fails to move above 1.3522 – 1.3535, we should see a deeper push down to the 1.3400 level. However, SM may also take prices higher to the 1.3645 – 1.3660 level before reversing down again.
EU long levels:  1.3405, 1.3355, 1.3318 EU short levels: 1.3535, 1.3550, 1.3655

GU: Monthly- the candle is a normal spread (359pips) bear spinning top closing on below-average vol>4months. Based on the location, the candle close and volume suggest buying into the candle. Weekly- the candle is a below-average spread (198pips) bear upthrust closing on high vol>7weeks. The candle close and volume suggests more downside. The Daily candle is a below average spread (71pips) bear long-body spinning top closing just off the low on high vol>4days. The candle close and volume suggests more downside but note that there is compression setting in as price reaches demand levels. 
Levels of interest: Short-term supply level  1.6487 – 1.6500 (confluence:  Fib 50% @ 1.6487), 1.6550 – 1.6560, 1.6615 – 1.6630, 1.6650 – 1.6667 Demand: 1.6418 – 1.6395, 1.6325 – 1.6308, 1.6225 – 1.6215
The Asian range is 1.6414 – 1.6439 currently. Note that GU is still in a technical uptrend. Price is at a retest of the previous re-accumulation TR 1.6394 – 1.6457. Price opened with a 20pip gap below Friday’s close that has since been closed. SM is likely to fade weak shorts before reversing back down to the demand levels before a possible reversal back upwards. A level to watch would be the Fib 88.6% @ 1.6349 as by then price would have travelled about 3xADR.
GU long levels:  1.6474, 1.6415, 1.6395, 1.6320, 1.6300, 1.6280 GU short levels:  1.6625, 1.6650, 1.6667