DAILY REVIEW 2 September 2014

EU Analysis:

EU: The Daily candle is a very small spread (26pips) bear closing off the low on very low vol<40days. The candle close and volume suggests a lack of selling pressure. Levels of interest: Demand: short term: 1.3104 Daily/Weekly: 1.3104, 1.3100 Supply: short-term: 1.3267, 1.3288, 1.3300, 1.3330 Weekly/Daily: 1.4184, 1.4246 pivot. With order stacks likely to be located slightly below the 1.3104 pivot or the 1.3100 key level, it is likely that SM test the 1.3104 level and reversing upwards. We may have a reversal from this level before the downward move is resumed as the longer term bias is still short.

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

GU Analysis

GU: The Daily candle is a below average spread (57pips) bull bull pseudo upthrust closing on low vol<4days. The candle close and volume suggests more downside. 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 has come off yesterday's high and with continued selling pressure after fade weak shorts to 1.6643 yesterday. SM is likely to continue the downward movement to retest the current low at 1.6534, a break and close below this level will likely see price test the 1.6464 pivot. 

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 03.15 am