DAILY REVIEW 19 May 2014
EU: The Daily candle is a small spread (41pips) bull pseudo upthrust closing on low vol>1day. The candle and volume suggests no buying interest. Levels of interest: Demand: 1.3650 – 1.3642 (Fib61.8% 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. Nothing has changed since yesterday and SM should retest the yesterday's high 1.3733 or the breakout 1.3744 level before reversing to reaccumulate around the 1.3665 level. A close below the 1.3642 pivot will probably see the 1.3561 level tested.
EU long levels: 1.3650, 1.3641, 1.3561 EU short levels:  1.3730, 1.3750, 1.3770, 1.3800, 1.3833, 1.3975, 1.400

GU: The Daily candle is a small spread (39pips) bear pseudo upthrust closing on low vol>1day. The candle close and volume suggests more downside. Levels of interest: Supply:  short-term 1.6850, 1.6861, 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 It still does not look like the re-accumulation is completed yet. Yesterday I wrote that SM would continue the buying pressure to 1.6840 or higher, they eventually settled for 1.6844 but did not continue much lower. SM is likely to retest the 1.6844 level and may push as high as 1.6861 before reversing to test the 1.6730 before reversing back up. A break and close below 1.6730 will likely see a test of the 1.6650 level.  
GU long levels:  1.6730, 1.6670, 1.6654 GU short levels: 1.6850, 1.6861, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 01.45 am EST