DAILY REVIEW 7 July 2014
EU: Weekly- the candle is a below average spread (115pips) bear closing near the low on low volu>1day. The candle close and volume suggests more downside. The Daily candle is a small spread (26pips) bear closing off the low on low vol<27days. The candle close and volume suggests a slowing down of selling but more downside can be expected. Levels of interest: Demand: short-term 1.3500, 1.3475, Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3730, 1.3800, 1.3900 Weekly/Daily: 1.4184, 1.4246 pivot. Goldman Sachs expectation of the FED to increase rates in Q3 2015 instead of Q1 2016 will create sentiment favourable to the USD but in the same breath, the also said that interest rates will likely remain low. As the FOMC minutes are due this Wed, SM is likely to position price prior to the release. SM is likely to maintain buying pressure to fade weak shorts to the 1.3620 level or perhaps to the 1.3640/50 level before reversing back downwards to test the 1.3500 level.

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

GU: Weekly- the candle is a average spread (165pips) bull closing near the high on low vol<9weeks. The candle close and volume suggests more upside. The Daily candle is a small spread (48pips) bull "near doji" closing on low vol<28days. The candle close and volume suggests more upside and a bear trap in place. Levels of interest: Supply short-term- 1.7076 (yesterday high) Weekly/Daily supply level: 1.7365, 1.7910, 1.800 Demand:  short-term- 1.7100, 1.7050, 1.6995, 1.6972, 1.6952, 1.6920, 1.6850, 1.6835  SM is likely to maintain selling pressure to test the 1.7098 level or lower before resuming the upward movement. 

GU long levels: 1.7100, 1.7050, 1.6995, 1.6970, 1.6952, 1.6930, 1.6920, 1.6850, 1.6835, 1.6825, 1.6810 GU short levels: 1.7178, 1.7365, 1.7910, 1.8000

Posted at 07.46 am EST