DAILY REVIEW 5 September 2014

EU Analysis:

EU: The daily candle is a very large spread (234pips) bear closing just off the low on ultrahigh vol>64 days. Note that this is the highest volume in 3 trading months. The candle close and vol suggests more downside. Levels of interest: Demand: Daily/Weekly: 1.2777, 1.2754, 1.2661 Supply: short-term: 1.3025, 1.3050 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: 1.2777, 1.2754, 1.2661  
EU short levels: 1.3025, 1.3050 

GU Analysis

GU: The Daily candle is a large spread (137pips) bear closing on very high vol>23days. The candle close and volume suggests more downside. 
Please see the chart for explanation and levels. 

GU long levels: 1.6250, 1.6215 
GU short levels: 1.6330, 1.6355, 1.6400

Posted at 06.48 am