DAILY REVIEW 28 May 2014
EU: The Daily candle is a small spread (56pips) bear small body spinning top on low vol>1day. 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: 1.3642, 1.3667, 1.3687, 1.3730 Weekly/Daily: 1.4184, 1.4246 pivot. Prices bounced off the daily ema200SM a second time yesterday as SM removed more weak shorts. SM is likely continue fading weak shorts to the 1.3642 breakout level or higher before reversing to continue the downward move.

EU long levels: 1.3612, 1.3600, 1.3561, 1.3572 - 1.3561 (Fib 61.8% confluence), 1.3476, 1.3399, 1.3294  EU short levels: 1.3642, 1.3667, 1.3687, 1.3730, 1.3750

GU: The Daily candle is a normal spread (99pips) bear large body spinning top closing on low vol>2days. 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 The poor UK news yesterday caused the drop of nearly 100 pips to 1.6781, just a pip below the day low of 16 May 2014, after which prices retraced abruptly to fade weak shorts. SM is likely to continue the buying pressure to fade weak shorts to 1.6833 or perhaps higher to the 1.6857 level before reversing back to test the 1.6781 level or lower to the 1.6730 level. 
GU long levels:  1.6781, 1.6730, 1.6670, 1.6654 GU short levels: 1.6833, 1.6857, 1.6875, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 01.27 am EST