DAILY REVIEW 30 May 2014
EU: The Daily candle is a small spread (39pips) bull upthrust closing on low vol>4days. The candle close and volume suggests more downside. 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. From the H4, it appears that SM has been doing a lot of buying. This makes sense since if the orders had already been stacked, prices should have gone lower already. SM is likely to maintain selling pressure to around yesterday's NY low (1.3595) or to the 1.3585 breakout level before reversing to fade weak shorts up to the 1.3667 level.

EU long levels: 1.3595, 1.3587, 1.3561, 1.3572 - 1.3561 (Fib 61.8% confluence), 1.3476, 1.3399, 1.3294  EU short levels: 1.3630, 1.3642, 1.3667, 1.3687, 1.3730, 1.3750

GU: The Daily candle is a small spread (48pips) bull small body spinning top closing on low vol<1day. 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 Prices whipped up and down yesterday and look to be heading back up. SM is likely to continue fading weak shorts to yesterday's high (1.6740) or even higher to the 1.6781 level before reversing back to test the 1.6692 level or lower. A close below the 1.6655 will likely mean more downside. 
GU long levels:  1.6692, 1.6670, 1.6654 GU short levels: 1.6730, 1.678, 1.6833, 1.6857, 1.6875, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 01.00 am EST