DAILY REVIEW 27 May 2014
EU: The Daily candle is a small spread (42pips) bull spinning top on low vol<24days. The candle close and volume suggests a smart money move fading weak shorts. 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: 1.3662, 1.3687, 1.3730 Weekly/Daily: 1.4184, 1.4246 pivot. Prices bounced off the daily ema200SM yesterday as SM removes weak shorts before continuing downwards. Prices broke the 1.3662 level in early Asia and appear to be retracing, possibly after taking out stop orders of shorts trading the 1.3642 pivot breakout level. The likely move is a continuation of the fade long so SM is likely to induce more shorts by testing the Asia low of 1.3642 (coincidence or design that it is also the previous pivot?) or lower to the 1.3634 NY session low before reversing to around 1.3687 or 1.3730

EU long levels: 1.3642, 1.3635, 1.3612, 1.3600, 1.3561, 1.3572 - 1.3561 (Fib 61.8% confluence), 1.3476, 1.3399, 1.3294  EU short levels: 1.3687, 1.3730, 1.3750

GU: The Daily candle is a very small spread (29pips) bull small body spinning top closing on low vol<24days. The candle close and volume suggests more downside. 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 "SM is likely to remove weak shorts to around the 1.6855 or even to the 1.6875 level..." Yesterday's high was 1.6852 and technically, yesterday's candle is an "inside day". Today, prices surged upward on low volume in early Asia to a current high of 1.6868 and appear to be retracing. SM is likely to continue the buying pressure to test the 1.6875 - 1.6880 level before reversing back to test the 1.6800 key level. Continuation long from the retracement move is likely around the Asia low 1.6833 level.
GU long levels:  1.6833, 1.6812, 1.6800, 1.6730, 1.6670, 1.6654 GU short levels: 1.6875, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 02.01 am EST