DAILY REVIEW 13 Mar 2014
Got caught up with some urgent matters yesterday.
EU: The Daily candle is a below average spread (71pips) bull closing just off the high on low vol>2days with daily volume divergence. The candle close and volume suggests more upside. Levels of interest: Demand: short term-  1.3890 – 1.3875, 1.3850 – 1.3832 (confluence ema200 H1), 1.3810 – 1.3790 The Asian range is 1.3895 – 1.3947. SM made the move after 5 days telling us that the breakout traders are all already absorbed, their orders have since been covered in the roughly 85pip range prior to the latest breakout above 1.3815 today. As there is no real supply after 1.3950 – 1.3960, a likely scenario is to reload for accumulation from these levels, the daily volume divergence in place supports this. SM is likely to test the current high up to around 1.3860 before reversing down to fade the breakout longs and reaccumulate for the longer push up.
EU long levels: 1.3885, 1.3835 EU short levels: 1.400, 1.4050

GU: The Daily candle is a below average spread (67pips) bull “near doji” closing way off the low on vol>2days. The candle close and volume suggests more upside. 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-  1.6625 1.6610 – 1.6600 The Asian range is 1.6605 – 1.6669 currently. SM plunged a little lower than anticipated and reversed. SM is likely to reverse and fade the breakout weak longs to around the 1.6625 level or lower to around 1.6610 before reversing back northward to retest daily supply at the 1.6823 and the next levels at 1.6840
GU long levels:  1.6625, 1..6610 GU short levels:   1.6823, 1.6835, 1.6860, 1.7000, 1.7030

Posted at 3.01 am EST