DAILY REVIEW 22 Apr 2014
EU: The Daily candle is a small spread (43pips) bear closing off the low on very low vol>1day. The candle close and volume suggests more downside. Levels of interest: Demand: short term: 1.3785, 1.3767 – 1.3760, 1.3735 – 1.3745  Supply:  short-term: 1.3966 The Asian range is 1.3789 – 1.3796 currently. Easter Monday yesterday resulted in low volume. The context of the weekly is still in place and price remains in a "inside week" position. SM is likely to create selling pressure to test the 1.3785 pivot inducing shorts before fading them to around the 1.3800 - 1.3815 level and reversing reversing down again to the day's low or lower. Any break and close above the 1.3862 level will likely see a retest of the pivot at 1.3905.
EU long levels:  1.3775, 1.3765, 1.3750 EU short levels: 1.3800, 1.3815, 1.3830, 1.3862, 1.3900, 1.400, 1.4050

GU: The Daily candle is a small spread (44pips) bull "almost doji" with a slightly longer pin above closing on low vol>1day. The candle close and volume suggests further downside. 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- 1.6697, 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 1.6784 – 1.6797 currently. Easter Monday yesterday meant that many markets were closed and volume continued to be low. The context of the weekly volume analyzed remains unchanged and the current daily candle could well turn out to be a bear trap before the actual reversal from supply levels above. SM is likely to retest the 1.6772 pivot or lower to 1.6750 breakout level to induce weak shorts before reversing to retest the previous supply 1.6823 breakout level or higher to the 1.6840 pivot before reversing back downward.
GU long levels:  1.6772, 1.6760, 1.6740, 1.6720 GU short levels: 1.6835, 1.6860, 1.6875, 1.7000, 1.7030

Posted at 12.57 am EST