DAILY REVIEW 5 June 2014
EU: The Daily candle is a small spread (41pips) bear closing at the low on low vol>2day. 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. After retracing from it's high at 1.3638 and coming off Asia low at 1.3598 SM is likely to retest to around the 1.3600 again 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 below average spread (69pips) bear small body spinning top closing on low vol>2days. 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 Prices tested the 1.6700  key level yesterday as expected and broke above the 1.6750 to kiss the H1 ema 200 (1.6767) before reversing. Since then, prices retraced to the current Asia low of 1.6733. SM is likely to retest the 1.6761 level prior to the UK interest rate decision later and may move further on the news to test 1.6781 and reverse from this level. A break above this level will see the 1.6818 level tested.
GU long levels: 1.6730, 1.6700, 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 12.31 pm EST