DAILY REVIEW 4 August 2014

EU: Weekly- the candle is a small spread (78pips) near doji on low vol>5weeks. The candle close and volume suggests more downside. The Daily candle is a below average spread (66pips) bull large body spinning top closing off the high on very high vol>40days. The candle close and volume suggests more downside. Levels of interest: Demand: short-term 1.3366 Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3440, 1.3485, 1.3500, 1.3547, 1.3573, 1.3600, 1.3730, 1.3800, 1.3900 Weekly/Daily: 1.4184, 1.4246 pivot. The poor NFP data last Friday gave SM the ideal fuel to fade weak shorts. SM is likely to continue to fade weak shorts to last Friday's high (1.3440 level) or higher to 1.3475 before reversing to test last week's low at 1.3366 or lower.

EU long levels: 1.3366, 1.3294  
EU short levels: 1.3440, 1.3485, 1.3500, 1.3547, 1.3600, 1.3646, 1.3670, 1.3730, 1.3800, 1.3900

GU: Weekly- the candle is an above average spread (198pips) bear closing off the low on average vol>1week. The candle close and volume suggests more downside. The Daily candle is a normal spread (90pips) bear closing off the low on very high vol>88days. The candle close and volume suggests more downside. Levels of interest: Supply short-term- 1.6895, 1.6922, 1.6950, 1.6980, 1.7016, 1.7042, 1.7120, 1.7145 Weekly/Daily supply level: 1.7178 (current pivot high), 1.7365, 1.7910, 1.800 Demand:  short-term-  1.6800 (confluence Fib 78.6%) Daily- 1.6780, 1.6741 (confluence Fib 88.6%), 1.6720, 1.6700, 1.6692 The weak manufacturing PMI coupled with the poor NFP data drove prices to stop just one pip shy of the 1.6800 key level before reversing back long to fade weak shorts. SM is likely to maintain selling pressure to the 1.6800 key level or lower before reversing back upwards.  

GU long levels: 1.6800, 1.6780, 1.6741, 1.6720, 1.6700, 1.6692 
GU short levels: 1.6895, 1.6922, 1.6950, 1.6980, 1.7016, 1.7042, 1.7120, 1.7145, 1.7170, 1.7192, 1.7365, 1.7910, 1.8000

Posted at 02.16 am EST