DAILY REVIEW 8 July 2014
EU: The Daily candle is a small spread (33pips) bull closing 1/2 off the low on low vol>1days. 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. With the FOMC minutes due out this Wed, there was simply neither range nor volume on this pair. SM is likely to position price prior to the release. There was simply no volume to move prices yesterday, volume may return for SM to create 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: The Daily candle is a below average spread (59pips) bear closing 1/3 off the low on low vol>1day. The candle close and volume suggests a retracement down before a continuation long. Levels of interest: Supply short-term- 1.7178 (current pivot high) Weekly/Daily supply level: 1.7365, 1.7910, 1.800 Demand:  short-term- 1.7050, 1.6995, 1.6972, 1.6952, 1.6920, 1.6850, 1.6835  First SM ran the bull with great PMI figures last week and today they ran the Sxxx with the poor manufacturing data short of heralding the collapse of UK manufacturing altogether. After breaking the key 1.7100 level, SM is likely to maintain selling pressure to test the 1.7063 level or lower before resuming the upward movement. 

GU long levels: 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 05.33 am EST