DAILY REVIEW 5 Feb 2014
EU: The Daily candle is a small spread (45pips) bear almost hammer-like closing on low vol<4days. The candle close and volume suggests a possible slowing selling. Unchanged Levels of interest: Daily Demand: 1.3405 – 1.3398, 1.3355 – 1.3344, 1.3318 – 1.3294 Short term supply: 1.3606 – 1.3623, 1.3655 – 1.3665. The Asian range is 1.3503 – 1.3538. Although there is the possibility that SM may reverse from another test of the current lows, I still take the view that EU is still likely to test the daily ema200 @ 1.3426 which has confluence with the daily demand level just below at around 1.3405. Asia range is 1.3498 – 1.3526 currently. If price breaks and closes above the 1.3537 level, SM is likely to fade weak shorts upto the Fib 50% @ 1.3595 (confluence with key level 1.3600 and short terms supply levels) before reversing down again to test the current lows at around 1.3480 or lower, if prices tests the current lows, it will likely push to the daily demand and ema200 level.
EU long levels:  1.3480, 1.3405, 1.3355, 1.3318 EU short levels: 1.3606, 1.3655

GU: The Daily candle is a near normal spread (87pips) bull spinning top-like closing on low vol<4days. The candle close and volume is technically a “no demand” or no buying pressure and suggests more downside. Unchanged 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 Daily Demand:  1.6255 (current low), 1.6225 – 1.6215
The Asian range is 1.6319 – 1.6340 currently. SM is likely to fade weak longs up to short term demand around 1.6276 before reversing back upwards if price is going further north as the daily trendline confluence comes into play. Otherwise, further fading of weak shorts to the short term supply at 1.6360 and reversing down from there to test the lows and lower at the daily demand levels is likely.
GU long levels:  1.6276, 1.6255, 1.6220 GU short levels:  1.6360, 1.6487, 1.6550, 1.6625, 1.6650, 1.6667