DAILY REVIEW 11 July 2014
EU: The Daily candle is a below average spread (61pips) bear closing 1/3 off the low on high vol>4days. The candle close and volume suggests more downside. Levels of interest: Demand: short-term 1.3500, 1.3475, Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3615 (Daily ema200), 1.3730, 1.3800, 1.3900 Weekly/Daily: 1.4184, 1.4246 pivot. Euro spiked up as expected after the FOMC minutes but got pushed down much lower by the collapse of Portugese equity. SM is likely to create buying pressure to fade weak shorts to the 1.3617 (ema200 H1) level or higher to around 1.3638 level before reversing to test the 1.3500 level.

EU long levels: 1.3615, 1.3500, 1.3476, 1.3399, 1.3294  EU short levels: 1.3620, 1.3646, 1.3670, 1.3730, 1.3800, 1.3900

GU: The Daily candle is a below average spread (63pips) bear closing 1/2 off the low on average vol>4days. The candle close and volume more upside distribution prior to a reversal. Levels of interest: Supply short-term- 1.7178 (current pivot high) Weekly/Daily supply level: 1.7365, 1.7910, 1.800 Demand:  short-term- 1.7095, 1.7050, 1.6995, 1.6972, 1.6952, 1.6920, 1.6850, 1.6835  After the FOMC minutes, GU has spiked to around the 1.7153 and coming off when poor trade balance data gave it another push from 1.7135 down to the 1.7100 key level from which prices reversed fading weak shorts. SM is likely to continue buying pressure to around the 1.7142 level or higher before reversing to test the 1.7100 and lower level. A close below the 1.7095 level will likely see the 1.7050 tested. 

GU long levels: 1.7095, 1.7050, 1.6995, 1.6970, 1.6952, 1.6930, 1.6920, 1.6850, 1.6835, 1.6825, 1.6810 GU short levels: 1.7142, 1.7155 - 1.7160, 1.7178, 1.7365, 1.7910, 1.8000

Posted at 04.10 am EST