DAILY REVIEW 3 Sep 2013

EU: The Daily candle is a small spread (43pips) bear closing 2/3 off the low on low vol<4days. The volume suggests no supply and the close does suggest price going a bit lower. Nothing has changed since yesterday and a H1 close below 1.3172 would likely see price test the 1.3100 level and maybe also the 1.3061 demand/breakout level. Price holding at the lows with bullish volume divergence in H1/H4 or a stophunt of the 1.3172 level will be the long setup. SM is likely to create selling pressure to fade the weak longs before reversing upwards.

EU long levels:   1.3175, 1.3150, 1.3100. 1.3061  EU short levels:  1.3300, 1.3325, 1.3340, 1.3371, 1.3400

GU: The Daily candle is normal spread (88pips) bull spinning top (with a longer up wick) closing on below-average vol<4days. Although the candle close and volume suggests no buying interest, the background is that yesterday price opened with a 39pip gap up and price closed above the daily ema200@1.5487 yesterday. The likely SM move will be to create selling pressure to fade the weak longs and then reverse.

GU long levels: 1.5516, 1.5500, 1.5480, 1.5420 GU short levels: 1.5628, 1.5687, 1.5711, 1.5720, 1.5750