DAILY REVIEW 26 August 2014

EU Analysis:

EU: Weekly: the candle is a above-average spread (178pips) bear closing near the low on low vol>1week. The candle close and volume suggests more downside. The Daily candle is a small spread (35pips) bear spinning top closing on low vol<4days. The candle close and volume suggests no selling pressure. Levels of interest: Demand: Daily/Weekly: 1.3130, 1.3105, 1.3100 Supply: short-term: 1.3267, 1.3288, 1.3300, 1.3330 Weekly/Daily: 1.4184, 1.4246 pivot. After the gap open yesterday, prices have failed to close and struggled to break 1.3220, reaching only 1.3218 The gap close level is 1.3238 Prices have closed below the previous gap close level of 1.3294 and have entered the weekly demand levels. SM is likely to fade weak shorts before continuing the downward move. Look at the charts above to view the levels for possible trades. 

EU long levels: 1.3130, 1.3105, 1.3100  
EU short levels: 1.3267, 1.3288, 1.3300 

GU Analysis

GU: Weekly- the candle is a above-average (176pips) bear closing on low vol>1week. The candle close and volume suggests more downside but with generally less selling pressure as the volume is also generally decreased over the last 5 weeks. The Daily candle is a below average spread (63pips) bull spinning top closing on low vol<4days with bullish daily volume divergence. The candle close and volume suggests buying commencement. Levels of interest: Supply short-term- 1.6655, 1.6680 Weekly/Daily supply level: 1.7178 (current pivot high), 1.7365, 1.7910, 1.800 Demand:  short-term-  1.6546, 1.6528, 1.6480, 1.6463 Price opened with a small gap down that was easily closed and SM is likely to continue fading weak shorts toward the 1.6654 breakout level or a bit higher before reversing back down. Look at the charts above to view the levels for possible trades.

GU long levels: 1.6546, 1.6528, 1.6480, 1.6463 
GU short levels: 1.6655, 1.6680

Posted at 02.05 am EST, updated 02.41 am EST