DAILY REVIEW 21 July 2014
EU: Weekly- the candle is a below average spread (149pips) bear large body spinning top closing off the low on low vol>3weeks. The candle close and volume suggests more downside. The Daily candle is a small spread (44pips) bear reverse upthrust closing on high vol>2days. The candle close and volume suggests a commencement of buying but will see more downside. Levels of interest: Demand: short-term 1.3475, Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3570, 1.3600, 1.3730, 1.3800, 1.3900 Weekly/Daily: 1.4184, 1.4246 pivot. Price finally broke the 1.3500 key level last Friday to 1.3490 before reversing upward in thin trading. Prices opened slightly gapped up by about 6 pips today. SM is likely to maintain buying pressure to fade weak shorts to the 1.3570 level or higher (maybe 1.3600 key level) before reversing to test the 1.3475 pivot.

EU long levels: 1.3500, 1.3476, 1.3399, 1.3294  EU short levels: 1.3570, 1.3600, 1.3646, 1.3670, 1.3730, 1.3800, 1.3900

GU: Weekly- the candle is a below average (154pips) bear spinning top closing on average vol>3weeks. The candle close and volume suggests more downside. The Daily candle is a normal spread (80pips) bear reverse upthrust on high vol>2days. The candle close and volume suggests more upside. Levels of interest: Supply short-term- 1.7120, 1.7145 Weekly/Daily supply level: 1.7178 (current pivot high), 1.7365, 1.7910, 1.800 Demand:  short-term- 1.7020, 1.6995, 1.6975, 1.6952, 1.6920, 1.6850, 1.6835 As expected, price tested the 1.7050 last Friday and went lower to 1.7035 before reversing.  SM will likely create buying pressure to fade weak shorts to the the 1.7120 or 1.7145 level before continuing the downward push.  

GU long levels: 1.7020, 1.6995, 1.6970, 1.6952, 1.6930, 1.6920, 1.6850, 1.6835, 1.6825, 1.6810 GU short levels: 1.7120, 1.7145, 1.7170, 1.7192, 1.7365, 1.7910, 1.8000

Posted at 01.26 am EST