DAILY REVIEW 1 September 2014

EU Analysis:

EU: Monthly: the candle closed at the low on low vol>2months. The candle close and volume suggests more downside. Weekly: the candle is a below average spread (90pips) bear closing at the low on low vol>2weeks. The candle close and volume suggests more downside. The Daily candle is a below average spread (65pips) bear closing at the low on average vol<3days. The candle close and volume suggests more downside but with reduced selling pressure. Levels of interest: Demand: short term: 1.3105 Daily/Weekly: 1.3105, 1.3100 Supply: short-term: 1.3267, 1.3288, 1.3300, 1.3330 Weekly/Daily: 1.4184, 1.4246 pivot. The re-escalation of the Ukraine conflict will continue to fuel the fear factor and hence maintain the USD. SM is likely to test the 1.3105 level and reversing upwards to the 1.3185 level or higher removing the breakout short traders before resuming the downward move.

EU long levels: 1.3105, 1.3100  
EU short levels: 1.3185, 1.3200, 1.3267, 1.3288, 1.3300 

GU Analysis

GU: Weekly- the candle is a small spread (78pips) bull spinning top closing on average vol>2weeks. The candle close and volume suggests no selling pressure but possibly more downside. The Daily candle is a small spread (50pips) bull small body spinning top closing on high vol<1day. The candle close and volume suggests lack of selling pressure. Levels of interest: Supply short-term- 1.6655, 1.6685, 1.6725, 1.6770, 1.6820 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 fade weak shorts to 1.6655 or higher before reversing to continue the downward movement to retest the current low at 1.6534.

GU long levels: 1.6534, 1.6528, 1.6480, 1.6463 
GU short levels: 1.6655, 1.6685, 1.6725, 1.6770, 1.6820

Posted at 03.40 am EST Updated 04.49 am