DAILY REVIEW 29 July 2014

EU: The Daily candle is a very small spread (16pips) bull closing off the high on low vol<15days. The candle close and volume suggests more downside but also the lack of selling interest. Levels of interest: Demand: short-term 1.3420, 1.3408, 1.3399, Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3460, 1.3485, 1.3547, 1.3573, 1.3600, 1.3730, 1.3800, 1.3900 Weekly/Daily: 1.4184, 1.4246 pivot. In the absence of major news yesterday, nothing has changed and SM is likely to fade weak longs to the 1.3460 level or higher before reversing to test last week's low at 1.3420 or lower to the 1.3399 pivot.

EU long levels: 1.3420, 1.3399, 1.3294  EU short levels: 1.3460, 1.3585, 1.3600, 1.3646, 1.3670, 1.3730, 1.3800, 1.3900

GU: The Daily candle is a very small spread (28pips) bull pseudo upthrust closing on low vol<44days. The candle close and volume suggests more downside. Levels of interest: Supply short-term- 1.7016, 1.7042, 1.7120, 1.7145 Weekly/Daily supply level: 1.7178 (current pivot high), 1.7365, 1.7910, 1.800 Demand:  short-term-  1.6952, 1.6920, 1.6850, 1.6835 Similarly the lack of major news means that the expected price action has yet to materialize. SM will likely maintain selling pressure to test last week's low of 1.6960 or lower to the 1.6952 pivot before reversing to the 1.7016 level and possibly reversing downward again.  

GU long levels: 1.6960, 1.6952, 1.6930, 1.6920, 1.6850, 1.6835, 1.6825, 1.6810 GU short levels: 1.7016, 1.7042, 1.7120, 1.7145, 1.7170, 1.7192, 1.7365, 1.7910, 1.8000

Posted at 05.34 am EST