DAILY REVIEW 12 May 2014
EU: Weekly- the candle is a normal spread (248pips) bear closing near the low on low vol>3weeks. The candle close and volume suggests more downside. The Daily candle is a normal spread (99pips) bear closing off the low on high vol<1day. The candle and volume suggests more downside. Levels of interest: Demand: short-term- 1.3735 (Fib50% confluence), Daily 1.3696 – 1.3671 (Fib61.8% confluence), 1.3572 (Fib78.6% confluence) Supply: short-term: 1.3800, 1.3834 -1.3850, 1.3975, 1.4000 key level Weekly/Daily: 1.4184, 1.4246 pivot. With the hangover from Draghi’s speech still resonating, prices opened with a slight gap down that has since been closed. SM are likely to maintain buying pressure to remove weak shorts to the 1.3800 key level or higher before reversing to test Friday’s lows and lower.  
EU long levels: 1.3690, 1.3672, 1.3660, 1.3641, 1.3574, 1.3560 EU short levels:  1.3800, 1.3833, 1.3975, 1.400

GU: Weekly- the candle is a below average (164pips) bear upthrust closing off the low on low vol>1week. The candle close and volume suggests more downside. The Daily candle is a normal spread (104pips) bear closing off the low on average vol<1day. The candle and volume suggests more downside. Levels of interest: Supply:  short-term 1.6905, 1.6918, 1.6995 Weekly/Daily supply level: 1.6991 – 1.7015, 1.7025 – 1.7045 Demand:  short-term- 1.6830, 1.6810, 1.6800,1.6775, 1.6760, 1.6670, 1.6654  SM is likely to fade weak shorts to around the 1.6900 key level or higher before reversing to test the Friday’s low or lower.  A close below the 1.6960 level will likely see more downside. 
GU long levels:  1.6830, 1.6810, 1.6800,1.6775, 1.6760, 1.6670, 1.6654 GU short levels: 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 01.27 am EST