DAILY REVIEW 2 June 2014
EU: Monthly- the candle is a below average spread (408pips) bear closing near the low on low vol>1month. The candle close and volume suggests more downside. Weekly- the candle is a small spread (82pips) bear small body spinning top closing on low vol<4weeks. The candle close and volume suggests no selling pressure. The Daily candle is a small spread (51pips) bull closing off the high on low vol>3days. The candle close and volume suggests more upside. 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 opened with a tiny 3.5pips gap up which has since been closed. Both breakout short traders and retracement short traders from the 1.3611 level have likely been removed with the price going up to 1.3649 on Friday. The path of least resistance now would logically be northward. SM is likely to create selling pressure to around current Asia low (1.3620) or to the 1.3611 breakout level before reversing to fade weak shorts up to the 1.3667 level or even the 1.3685 level before reversing to continue the downward move.

EU long levels: 1.3611, 1.3595, 1.3587, 1.3561, 1.3572 - 1.3561 (Fib 61.8% confluence), 1.3476, 1.3399, 1.3294  EU short levels: 1.3667, 1.3687, 1.3730, 1.3750

GU: Monthly- the candle is a below average spread (303pips) bear closing off the low on low vol<1month. The candle close and volume suggests more downside. Weekly- the candle is a average spread (189pips) bear large body spinning top closing on low vol<4weeks. The candle close and volume suggest more downside. The Daily candle is a below average spread (62pips) bull closing nearly 1/2 off the high on low vol<3days. The candle close and volume suggests a current lack of selling pressure. 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 opened with a gap up 14 pips that has since been closed. With the weak shorts from the 1.6731 level taken out last Friday, the path of least resistance now is northbound. SM is likely to create selling pressure to around the 1.6724 level or lower to 1.6715 before reversing to test 1.6781 or higher.  
GU long levels:  1.6730, 1.6715, 1.6692, 1.6670, 1.6654 GU short levels: 1.6781, 1.6833, 1.6857, 1.6875, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 11.31 pm EST