DAILY REVIEW 16 Apr 2014
EU: The Daily candle is a small spread (43pips) bear spinning top closing on low vol<1day with volume divergence. The candle close and volume suggests buying. Levels of interest: Demand: short term: 1.3785 (Fib38.2% confluence) , 1.3767 – 1.3760 (Fib 50% confluence) Supply:  short-term: 1.3966 The Asian range is 1.3805 – 1.3830 currently. SM is likely to induce breakout traders long at 1.3832 (Mon Asia low/breakout) or 1.3862 (Mon high) before reversing back down to test the lows or lower. A break and move to Friday’s gap close will likely see a test of the 1.3900 key level.
EU long levels:  1.3785, 1.3765 EU short levels: 1.3900, 1.400, 1.4050

GU: The Daily candle is a normal spread (93pips) bear “reverse upthrust” closing about 70pips off the low on low vol>2days. The candle close suggests and volume suggests buying commencement but may be a bull trap. Levels of interest: Short-term supply– 1.6823 Weekly/Daily supply level 1.6835 – 1.6845, 1.6860 – 1.6875, 1.6991 – 1.7015, 1.7025 – 1.7045 Demand:  short-term- 1.6697, 1.6673 (Fib50% confluence), 1.6640 (Fib61.8% confluence), 1.6600, 1.6548 (Friday low), 1.6533 (confluence Daily Fib50%), 1.6525 – 1.6515, 1.6500 – 1.6490 The Asian range is 1.6719 – 1.6733 currently. Yesterday’s background, SM used the mixed UK news to clear demand all the way to 1.6654 and then took out almost all the weak shorts. SM is likely to create buying pressure to induce longs at 1.6749 (yesterday’s high) before reversing down to push lower for the Reaccumulation phase to commence, possibly to retest the 1.6654 level or lower before reversing upwards. 
GU long levels:  1.6654 1.6627, 1.6600, 1.6585 GU short levels:  1.6749, 1.6799, 1.6823, 1.6835, 1.6860, 1.7000, 1.7030

Posted at 2.33 am EST