DAILY REVIEW 23 May 2014
EU: The Daily candle is a small spread (42pips) bear closing off the low on average vol<1day. The candle and volume suggests the reduced selling and continued buying at the lows. 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. SM has tested the previous pivot at 1.3642 and looks likely to reverse from this level back to the 1.3688 or higher. A close below the 1.3642 pivot will probably see the 1.3561 level tested.
EU long levels: 1.3642, 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 below average spread (65pips) bear large body spinning top closing on low vol>2days. The candle close and volume suggests more upside. Levels of interest: Supply:  short-term 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 Yesterday, I wrote "likely to maintain the selling pressure to test yesterday's low at 1.6856 or lower.." Prices actually went to 1.6850 and held the level. SM is likely to maintain buying pressure to the 1.6900 level.
GU long levels:  1.6850, 1.6840, 1.6730, 1.6670, 1.6654 GU short levels: 1.6863, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 02.54 am EST