DAILY REVIEW 4 June 2014
EU: The Daily candle is a below average spread (62pips) bull closing 1/3 off the high on low vol<5days. The candle close and volume suggests no buying pressure. 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. Euro actually rose to 1.3647 yesterday even with the news of mixed Euro data and good US data. It does look like SM is preparing to move lower. SM is likely to maintain the selling pressure to around the 1.3600 key level before reversing up to fade the weak shorts possibly to retest the 1.3650 or higher before the ECB interest rate decision. A close below 1.3585 will likely see more downside

EU long levels: 1.3597, 1.3587, 1.3561, 1.3572 - 1.3561 (Fib 61.8% confluence), 1.3476, 1.3399, 1.3294  EU short levels: 1.3650, 1.3667, 1.3687, 1.3730, 1.3750

GU: The Daily candle is a small spread (52pips) bull pseudo upthrust closing on low vol<5days. The candle close and volume suggests more downside. Levels of interest: Supply: 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,prices reached 1.6781 on good UK data and reversed on good US data. SM look like they have completed the accumulation of short traders' stops and may be poised to move lower. SM is likely maintain selling pressure to test the 1.6700 key level and lower, a retest of the 1.6740 - 1.6750 level may provide short setups. A break below 1.6692 will see more downside.
GU long levels:  1.6700, 1.6692, 1.6670, 1.6654 GU short levels: 1.6741, 1.6750, 1.6781, 1.6833, 1.6857, 1.6875, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 12.31 pm EST