At the Close. This is now turning for good.

17:55CET

I had been warning for a while now that price action of the last few weeks was irrational at the very best. Well, techs have finally taken a hold of this silly market, and the USD is poised for a huge comeback, even greater than what most think. Take into account that the level of selling seen in the USD was unmatched for the year, and you can imagine what the magnitude of the comeback could be.

Retail positioning has shifted for good in AUD/USD and EUR/GBP, and this is going to be a decisive factor to propel the USD higher, Gold lower, and EUR down to 1.34-33 in the next few weeks. Positioning in EUR/USD and GBP/USD has not shifted yet, but we're close to it, and it's only a matter of time that we say the same in USD/CHF and USD/JPY, so it's time for a nice USD upmove, at least until Gold sees 1,250-20 on its way down, now that the Head and Shoulder formation is almost completed.

Technically, the EUR/USD has today broken a perfectly shaped diamond picture, which is, along with the H&S, the most bearish pattern around, and a 400-pip target is next, exactly at the time the losers will start piling in with longs.

Before leaving, let me give you the latest retail data, where you'll see the shift in momentum taking place:

   1. AUD/USD
      52.47% 47.53%
   2. EUR/CHF
      59.45% 40.55%
   3. EUR/GBP
      53.51% 46.49%
   4. EUR/JPY
      53.64% 46.36%
   5. EUR/USD
      44.12% 55.88%
   6. GBP/JPY
      58.29% 41.71%
   7. GBP/USD
      40.53% 59.47%
   8. USD/CAD
      57.01% 42.99%
   9. USD/CHF
      72.71% 27.29%
  10. USD/JPY
      77.73% 22.27%

Oct 27, 2010 17:40 GMT+0200
%Long // %Short

Time to enjoy the USD ride, don't fade it, as it's going to be massive. This is my recommendation for today. I'm Tony Juste, thanks for being there, I'll see you again tomorrow.

Posted via email from MT4