DAILY REVIEW 6 August 2014

EU: The Daily candle is a below average spread (66pips) bear closing off the low on high vol>1day. The candle close and volume suggests more downside but also that there is some buying commencement. Levels of interest: Demand: Daily/Weekly: 1.3330, 1.3300, 1.3294 Supply: short-term: 1.3395, 1.3420, 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. At time of writing, the German Factory Orders data had missed by a mile and prices had dived past yesterday's low only to trap weak shorts and now appears to be headed back up. SM is likely to continue the buying selling to test last week's low at 1.3366 or lower.

EU long levels: 1.3294  
EU short levels: 1.3395, 1.3420, 1.3440, 1.3485, 1.3500, 1.3547, 1.3600, 1.3646, 1.3670, 1.3730, 1.3800, 1.3900

GU: The Daily candle is a below average spread (43pips) bull closing at the high on low vol>1day. The candle close and volume suggests no buying pressure and a likely downward movement soon. 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 With the Manufacturing data out soon, SM is likely to maintain buying pressure to Asia high (1.6886 or higher to the 1.6895 level or higher to 1.6922 level before reversing back downwards.  

GU long levels: 1.6800, 1.6780, 1.6741, 1.6720, 1.6700, 1.6692 
GU short levels: 1.6895, 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 04.14 am EST