DAILY REVIEW 7 Aug 2013

EU: Daily below average-spread (77pips) bull closing on vol<1 day. The candle close and volume suggests that there is more upside. The daily candles look somewhat like they are basing to go higher. Perspective: July's monthly candle is a normal-spread bull closing just off the high on vol<5weeks (this was after a successful retest of the spring at 1.2723). H4 candles currently at time of writing show no demand and price falling. SM will be likely maintain the selling pressure to remove weak longs then reverse upwards.

 EU long levels:  1.3280, 1.3261, 1.3245 EU short levels:  1.3321, 1.3342

GU: Daily candle is a small-spread (61pips) bear “evening star” closing on lower than average volume <4days. This shows no buying pressure and price is likely to move lower before reversing. SM has already created selling pressure to fade the weak longs. However, they may also reverse upwards taking in longs to stoprun the Asia high or 1.5380 level before pushing further downwards.

GU long levels:  1.5300, 1.5268 GU short levels: 1.5480, 1.5500, 1.5525