DAILY REVIEW 13 Aug 2013

EU: Daily candle is a small-spread (66pips) bear spinning top closing on below-average vol>1 day. The volume indicates no selling pressure and the close suggests buying. Broker open positions today still reveal a net short position but ratio of long positions have increased significantly. In moving down to 1.3277, SM has taken stops below last Thursday’s low and now look to be going back into the upward technical trend. Price is well back above the key 1.3300 level and after fading the weak longs for 2 days, possible SM move today will be to retest yesterday’s high or higher. Note that as longs start to pile in, the road less travelled upwards becomes so much smoother for SM to mark up. SM can be expected to maintain the buying pressure to test 1.3350 (Fri NY low) especially as there is enough news events for SM to propel prices as they may require.

EU long levels:   1.3300, 1.3272 EU short levels:  1.3350, 1.3400, 1.3430

GU: The daily candle is a below average-spread (63pips) bear closing at the low on low volume <54days The volume indicates no selling pressure whereas the close indicates a lower price. Both continue to play out as price has pushed lower and is now reversing upwards. SM will likely maintain the buying pressure to test the breakout (gap) level at 1.5495 and the daily ema200 at 1.5508. An hourly close above the ema200 will likely see GU resume its upward trajectory.

GU long levels:  1.5447  GU short levels: 1.5500, 1.5535, 1.5575, 1.5600, 1.5650, 1.5670