DAILY REVIEW 16 June 2014
EU: Weekly- the candle is a below average spread (156pips) bear large body spinning top closing on low vol<6weeks. The candle close suggests more downside and the volume suggests a lack of selling interest. The Daily candle is a below average spread (58pips) bear spinning top on low vol<1day. The candle close and volume suggests the possible commencement of buying. Levels of interest: Demand: short-term 1.3500, 1.3475, Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3676, 1.3687, 1.3730 Weekly/Daily: 1.4184, 1.4246 pivot. Prices are still contained within the 5th June 2014 FOMC blockbuster and subsequent NFP of 6th June 2014. Last Friday, I wrote "SM is likely induce shorts at the breakout level 1.3585..test the current low (1.3521)" but SM actually only went to the 1.3578 before dropping to retest the 1.3520 level and reversing. With the FOMC Rate decision due this week, SM will be likely to position prices against the direction of the intended move. SM is likely to fade weak shorts to around last Friday's Asia low (breakout level) 1.3547 or higher to 1.3575 before reversing to test the low at 1.3500

EU long levels: 1.3520, 1.3500, 1.3476, 1.3399, 1.3294  EU short levels: 1.3550, 1.3575, 1.3585, 1.3600, 1.3676, 1.3687, 1.3730, 1.3750

GU: Weekly- the candle is a average spread (253pips) bull closing off the high on low vol>2weeks. The candle close and volume suggests more upside. The Daily candle is a below average spread (70pips)bull closing 1/2 off the high on very high vol>5days. The candle close and volume suggests possible retracement before pushing further up. Levels of interest: Weekly/Daily supply level: 1.6991 – 1.7015, 1.7025 – 1.7045 Demand:  short-term- 1.6920, 1.6850, 1.6835  Prices missed the 1.6995 pivot last week by 5 pips and opened gapped up about 10pips. SM is likely to induce more breakout traders long at last Friday's high 1.6990 or even the 1.6995 pivot before reversing to fade weak longs to around the previous breakout level 1.6920 or even lower before reversing back up.
GU long levels: 1.6920, 1.6850, 1.6835, 1.6825, 1.6810 GU short levels: 1.6995, 1.7030, 1.7042

Posted at 01.32 am EST