DAILY REVIEW 1 Aug 2013

EU: Daily wide-spread (134pips) bull spinning top on above average vol>13 days with daily bearish volume divergence. Significantly, price closed at 1.33005 and although price kissed the 81.6%fib and dropped from there, this does not look anything like a reversal yet. Considering that SM did vacuum cleaning over 134 pips taking out weak shorts and weak longs. First, if they only wanted to spike up to move down, they need not have taken out more than 2 days of price range. Secondly, price has not reached the daily supply area 1.3390 – 1.3400 yet. SM will continue the selling pressure through Asia before reversing back up and this time we may see the push to the daily supply levels pre-NFP which is next on the queue. 

EU long levels:  1.3270, 1.3252, 1.3240  EU short levels: 1.3342, 1.3390, 1.3400, 1.3420

GU: Daily candle is a wide-spread (132pips) bear pin closing 2/3 off the low on average vol>13day. Price bounced up at the start of the daily demand level  1.5120 and the close suggests buying and a slowing down of the downward momentum. It also suggests that the daily demand level  1.5075 – 1.5025 is a high probably reversal area so I will still be looking to sell at the highs and buying when I get a set up at the demand area.  However, if price stalls and cannot break yesterday’s low, I will look for a long on the stoprun of that level as well. I will only be interested in shorts with a setup from the higher levels above.  

GU long levels:  1.5120, 1.5080, 1.5025 GU short levels: 1.5280, 1.5300, 1.5319