DAILY REVIEW 6 June 2014
EU: The Daily candle is a very large spread (167pips) bull closing at the high on ultrahigh volume vol>84days. 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. SM used the news yesterday to clear out stops all the way to the 1.3500 key level breaking previous key pivots at 1.3562 and lower. The interest rate cut is a significant decision that has longer term effect and the huge whipsaw of >150pips yesterday simply enabled SM to reposition orders at the high possibly to drop during NFP today. SM is likely to create buying pressure to around the 1.3670 level or higher to around the 1.3715 level before reversing back down.

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 normal spread (102pips) bull closing at the high on very high vol>47days. The candle close and volume suggests more upside. 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 had tested the 1.6824 level yeterday post ECB rate decision. With the NFP expected later, SM is likely to create breakout longs before taking their stops lower at around the 1.6775 or lower and reversing back long.
GU long levels: 1.6775, 1.6760, 1.6750, 1.6730, 1.6700, 1.6692, 1.6670, 1.6654 GU short levels: 1.6875, 1.6905, 1.6918, 1.6995, 1.7030, 1.7042

Posted at 07.17 am EST