As everyday after the NY close, let's look at the most attractive levels in the Forex market where the smart money aka better informed speculators (large institutions) have been active buyers and sellers. Before we proceed with the analysis though, we will take a peak at where the USD index stands, a key component to factor in to understand near term USD performance. 

The index came into close contact with 82.00 on Thursday, but bids parked around the periphery of the round number continue to reject prices from going lower. There has been multiple attempts to crack the 82.00 area, yet no major penetration observed so far.

Overall, the index conditions are best defined as consolidative between 82.00 demand and 83.50 supply. During Friday, should the USD expand its recovery, watch 82.50 intraday supply. Above it, a full cent appreciation to retest 83.50 may occur. Note USD broad-based weakness across the board is only expected once the index can fully absorb the 81.50/82.00 demand, which may cause the index to fall to its next layer of bids at 80.00/80.50.

See areas drawn in white to identify supply/demand.

Chart LIVE available at FXstreet.com

Below, readers can find the most attractive pairs to keep an eye for this Friday .These areas will represent susceptible chart points where large institutions are likely to join the existing trend or potentially trying to reverse a particular tendency, all occurring based on the laws of supply and demand. As a preview, before we get more in detail, it is worth noting that there is not a whole lot of fresh areas, with the Aussie and Kiwi possibly the most appealing atm. 

EUR/USD - As noted repeatedly in previous analysis, the Euro was heading into a trouling area between 1.3138-40/60, identified as potential supply. The smart money was busy buying during the European session, up until that level, where a rotation lower towards 1.31 followed, as supply exceeded demand. The topside failure indicates that there is still more willing sellers than buyers overhead. Strengthening the potential bearish case is the fact that both attempts thru Europe and later on along US hours failed dramatically at the level, providing clues of a potential turning point. The committed protection of the upside, coupled with the fact that no fresh demand has really been created on the recent rise other than some weak pivot points - tests into existing demand levels - suggests that the Euro may perform poorly in the next few session. However, don't overlook areas of conventional support at 1.3050/1.30. No obvious fresh demand is seen until 1.2932/15.

AUD/USD - The Aussie looks poised to challenge higher territory until 1.06 conventional resistance ahead of 1.0625, next supply area, are achieved. The impulsive bullish moves out of last European session have been followed by corrective runs to the downside, a typical behaviour of a market still keen to join opportunities on dips. First intraday demand is found at the 1.0523/10 ahead of 1.0463/48.

NZD/USD - Just like its neighboring currency the Aussie, although in a much stronger fashion, the Kiwi was bid to the boots during Thursday, as hot money continues to flow into the 'Lord of the Rings' land and with FinMin Mr. English reminding just yesterday to the market that higher rates might be unavoidable should the housing prices remain at current rate. Amid this scenario, in which technicals and fundametals seem to converge, looking for intraday demand levels to capitalize on any dips makes complete sense.  At the moment, there is a sequence of attractive intraday demands starting at 0.8590/80, followed by another premium demand - level on top of level - around 0.8533/0.8513.

USD/JPY- Lastly, it looks like the USD/JPY is having an awful time trying to break above the 100.00 area. With price approaching weekly supply 1001.0/101.50, two failed attempts to get much follow through to conquer the big round number, and most importantly, no clear intraday demand near by other than 99.45/38 - with most unfilled buy orders thought to have been filled now -, the danger of a deeper correction lower is rising!

Weekly supply:

Intraday demand identified:

Note to all readers:

* At the most fundamental level, an exchange rate between a pair of currencies will rise because there is more demand for it, thus creating an imbalance between buying and selling interest at a particular level. On the supply side, the value of an exchange rate between two given currencies will be reduced as soon as supply exceeds demand.

The following analysis intends to dissect for the reader at FXstreet.com where large banking institutions have been recently busy buying and/or selling a particular pair and what is the likelihood of these activity continuing to show up at that particular level, with the ultimate aim of seeking to fill the remaining unfilled buy or sell orders. Note conventional technical analysis will not be conducted, with the sole focus being supply/demand areas.

No entry/stops/profit target levels will be given, as the intention of this report is to purely suggest where large institutions aka the smart money - insiders and better informed speculators - are most likely to be actively selling or buying. You should factor in other elements to understand the potentiality of success of a particular area. To learn more about supply and demand, visit Sam Seiden's articles and webinars

Good luck!