DAILY REVIEW 29 August 2014

EU Analysis:

EU: The Daily candle is a small spread (54pips) bear spinning top closing on high vol>5days. The candle close and volume suggests more downside. Levels of interest: Demand: short term: 1.3152 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. Another lacklustre day and week so far as SM looks to be starting some sort of re-accumulation activity. In the background, although the Gaza crisis appears to have abated somewhat, the Ukraine conflict has re-escalated. These events only serve to keep the fear factor strong and hence maintain the USD strength as well. SM is likely to test the 1.3152 level and reversing upwards to today's Asia high or higher (possibly trapping and removing the breakout short traders) before resuming the downward move. Today is the last trading day of the month so SM may whipsaw prices in order to book profits. 

EU long levels: 1.3152, 1.3130, 1.3105, 1.3100  
EU short levels: 1.3200, 1.3267, 1.3288, 1.3300 

GU Analysis

GU: The Daily candle is a small spread (46pips) bull "upthrust" closing on very high vol>10days. The candle close and volume suggests selling. 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 SM is likely to test yesterday's high1.6612 or higher before reversing to continue the downward movement to retest the current low at 1.6534.

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

Posted at 04.03 am EST