DAILY REVIEW 15 May 2014
EU: The Daily candle is a very small spread (32pips) bull “pseudo upthrust” closing on low vol<1day. The candle and volume suggests more downside. Levels of interest: Demand: short-term- 1.3688 (Fib61.8% confluence) Daily 1.3572 (Fib78.6% confluence) 1.3650 – 1.3642 (Fib50% confluence) 1.3576 – 1.3561 (Fib78.6% confluence) 1.3551 (H4 pivot) 1.3525 – 1.3512 (Fib88.6% confluence) Supply: short-term: 1.3730, 1.3750, 1.3770, 1.3800, 1.3834 -1.3850, 1.3975, 1.4000 key level Weekly/Daily: 1.4184, 1.4246 pivot. There has been no change since yesterday and even with the good US PPI news, prices barely moved and failed to break below 1.3701 Prices have been compressed in this very tight range for the past 2 days now. Based on order flow, it would appear that SM are likely to create buying pressure to fade weak shorts to test yesterday’s high at 1.3730 before reversing to create selling pressure to the pivot low at 1.3688 or lower to induce breakout traders short before reversing back to the 1.3800 level.  
EU long levels: 1.3688, 1.3672, 1.3660, 1.3641, 1.3574, 1.3560 EU short levels:  1.3730, 1.3750, 1.3770, 1.3800, 1.3833, 1.3975, 1.400

GU: The Daily candle is a large spread (121pips) bear closing off the low on high vol>3days. The candle and volume suggests more downside but buying has commenced. Levels of interest: Supply:  short-term 1.6761, 1.6805, 1.6820, 1.6905, 1.6918, 1.6995 Weekly/Daily supply level: 1.6991 – 1.7015, 1.7025 – 1.7045 Demand:  short-term- 1.6760, 1.6720 (confluence Fib78.6%), 1.6690 (confluence Fib88.6%), 1.6670, 1.6654 Prices tanked yesterday taking out the previous pivot at 1.6761 on the release of UK employment data and BOE Governor Carney’s speech. SM is likely to continue buying pressure to fade weak shorts to around 1.6786 or higher and reverse to test the previous pivot 1.6761 or yesterday’s low at 1.6752 before reversing back up.  
GU long levels:  1.6760, 1.6752, 1.6670, 1.6654 GU short levels: 1.6761, 1.6805, 1.6820, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 00.14 am EST