DAILY REVIEW 15 August 2014

Have been super busy this week folks so I'll get everyone up to speed.
EU Analysis:

EU: The Daily candle is a below average spread (59pips) doji closing on average vol>3days. The candle close and volume suggests more downside. Levels of interest: Demand: Daily/Weekly: 1.3330, 1.3300, 1.3292, 1.3250, 1.3205 Supply: short-term: 1.3382, 1.3395, 1.3410, 1.3425, 1.3440, 1.3485, 1.3500 Weekly/Daily: 1.4184, 1.4246 pivot. The combination of poor EUR news from Germany and France coupled with poor US news made for a whipsaw type day yesterday with price kissing the 1.3407, just 3 pips shy of our expected level for a turn. Nothing has changed yet as price remains within yesterday's prices. SM is likely to create buying pressure to to around the 1.3382 before reversing back down to test the 1.3300 key level or lower. Note that being the weekend, prices may whipsaw to grab stops at week-high before reversing as well. 

EU long levels: 1.3330, 1.3292, 1.3250, 1.3205  
EU short levels: 1.3382, 1.3395, 1.3410, 1.3425, 1.3440

GU Analysis:

GU: The Daily candle is a very small spread (39pips) bear pseudo upthrust closing on low vol<1day. The candle close and volume suggests more downside. Levels of interest: Supply short-term- 1.6735, 1.6755, 1.6803, 1.6825 Weekly/Daily supply level: 1.7178 (current pivot high), 1.7365, 1.7910, 1.800 Demand:  short-term-  1.6575, 1.6546, 1.6528, 1.6480, 1.6463  Price has pushed very close but has not broken the 1.66548 pivot yet. Although the order stacks now will be lower toward the next weekly pivot or lower so we can expect SM to remove some weak shorts before resuming the move downward if they break and fade weak breakout shorts which will give a retracement trade long to around the 1.6735 level or so to close out the week since there is no blockbuster-type news event due. See the charts posted for possible levels. As always, the demand levels are possible reversal levels but are yet to be confirmed until tested.

GU long levels: 1.66548, 1.6575, 1.6546, 1.6528, 1.6480, 1.6463 
GU short levels: 1.6735, 1.6755, 1.6803, 1.6825

Posted at 04.10 am EST