DAILY REVIEW 30 July 2014

EU: The Daily candle is a small spread (40pips) bear closing very near the low on low vol>1day. The candle close and volume suggests more downside but also the slowing of selling momentum as daily price-volume divergence continues. Levels of interest: Demand: short-term 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. With the FOMC coming up on later today, SM has been pricing in the continued FED tapering and is likely positioning price close to the significant levels prior to the FED Interest rate decision today.  In the event of the FED maintaining the current interest rate or not committing to a clear interest rate rise timetable, SM will likely take profit and reverse from the significant levels. SM is likely to induce short traders by breaking through the 1.3399 pivot which is ongoing before reversing to take out their stops to around the 1.3420 level or higher in preparation for the upcoming ADP data and other news today. 

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

Posted at 04.51 am EST