DAILY REVIEW 7 August 2014

EU: The Daily candle is a small spread (54pips) bull reverse upthrust on high vol>3day. The candle close and volume suggests more upside. 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. Prices dived to 1.3332, just 2 pips short of a daily demand level at 1.3330 but never reached the expected 1.3300 key level. SM is likely to continue the buying pressure to fade weak shorts to around the 1.3410 (breakout level) or higher to the 1.3427 before reversing back down to test the 1.3332 low or lower.

EU long levels: 1.3332, 1.3294  
EU short levels: 1.3410, 1.3427, 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 (66pips) bear closing 1/2 off the low on low vol>2days. The candle close and volume suggests no buying pressure and more 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 SM has already moved prices downward during Asia and is likely to maintain selling pressure to test the 1.6913 (Monday low) or the 1.6800 key level before reversing back upwards. A close below the 1.6800 key level will likely see a test of the 1.6750 level (confluence with the Fib 88.6%)  

GU long levels: 1.6813, 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 02.03 am EST