DAILY REVIEW 14 May 2014
EU: The Daily candle is a near normal spread (82pips) bear closing near the low on high vol>2days. The candle and volume suggests more downside. Levels of interest: Demand: 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. Prices finally closed the gap at 1.3695 from 6 April 2014 and have reversed from there. SM is likely to maintain buying pressure to yesterday’s NY session high or higher to fade weak shorts before reversing to test yesterday’s low or lower.  
EU long levels: 1.3688, 1.3672, 1.3660, 1.3641, 1.3574, 1.3560 EU short levels:  1.3730, 1.3750, 1.3772, 1.3800, 1.3833, 1.3975, 1.400

GU: The Daily candle is a below average spread (64pips) bear closing just off the low on high vol>2days. The candle and volume suggests more downside followed by upside. Levels of interest: Supply:  short-term 1.6865, 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  Yesterday, I wrote “SM is likely to induce shorts at yesterday’s low or lower at around 1.6818 before reversing…” SM is likely to maintain the buying pressure in fading weak shorts perhaps to the 1.6865 previous Asia breakout level  or even to the 1.6902 level before reversing to test yesterday’s low or lower. 
GU long levels:  1.6818, 1.6800, 1.6775, 1.6760, 1.6670, 1.6654 GU short levels: 1.6865, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 00.15 am EST