DAILY REVIEW 8 August 2014

EU: The Daily candle is a small spread (56pips) bear closing 1/2 off the low on high vol<1day. 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 actually tested the 1.3400 level and 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 The UK data released gave SM the fuel to tak stops below the 1.6800 key level. SM is likely to fade weak shorts back to the 1.6850 level or higher before reversing to continue the downward move. 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: 1.6780, 1.6741, 1.6720, 1.6700, 1.6692 
GU short levels: 1.6850, 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 06.50 am EST