DAILY REVIEW 30 July 2014

EU: The Daily candle is a small spread (48pips) bear closing 1/2 off the low on very high vol>37days. The candle close and volume suggests more downside but also the possible commencement of buying. Levels of interest: Demand: short-term 1.3399, Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3400, 1.3433, 1.3460, 1.3485, 1.3547, 1.3573, 1.3600, 1.3730, 1.3800, 1.3900 Weekly/Daily: 1.4184, 1.4246 pivot. The FOMC minutes did not throw up any surprises as the FED maintained the current tapering and kept interest rates unchanged. The reaction to the news was more or less as expected as SM first created what appeared to be selling pressure on the release and subsequently reversed to fade the news traders and the weak shorts. SM is likely to continue fading weak shorts to the 1.3433 - 1.3450 level before reversing to test the yesterday's low at 1.3366 or lower. 

EU long levels: 1.3366, 1.3294  EU short levels: 1.3400, 1.3433, 1.3460, 1.3585, 1.3600, 1.3646, 1.3670, 1.3730, 1.3800, 1.3900

Posted at 04.54 am EST