DAILY REVIEW 4 September 2014

EU Analysis:

EU: The Daily candle is a very small spread (37pips) bull spinning top closing on very highe vol>9days. The candle close and volumes suggests absorption. 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. Nothing has changed as the order stacks are 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 before reversing upwards. This may happen later during the news release on the Euro interest rate decision and the US ADP NFP data. The longer that price stays and oscillates in this level, the higher the likelihood of a daily reversal from this level. However the fact remains that 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) bear spinning top closing on very high vol<1day. The candle close and volume suggests buying. 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 decisively cleared out stops below the weekly pivot 1.6464 by more than 20pips. It is unlikely for there to be significant orders even at the current low. SM is likely to fade weak shorts all the way up to the 1.6528 or even higher to 1.6550 before reversing to continue the downtrend. Please see the chart. 

GU long levels: 1.6463, 1.6390 
GU short levels: 1.6528, 1.6550, 1.6756

Posted at 04.25 am