At the Open. A good month-end close for the USD?

09:23CET

Good morning everyone, hope you are fine. Techs have worked well overnight and the majors have retreated well off their highs, and Gold has not been able to break 1,345 on the upside, which is a good signal that the right shoulder of the H&S pattern in the 4hr chart still may be considered valid.

The mid 1.59 level was a good one to short Cable, and so it was anything above 1.39 in EUR/USD or anything above 0.98 in Aussie, as I yesterday pointed out in my closing post. Technical reasoning lay behind what I stated, and I feel that today Cable should be the one falling the most against the other majors, as the unit has been underpinned so far by EUR/GBP sell-off, but in an scenario of further Euro falling, the GBP should follow as well.

I definitely think we are far from over in this new round of USD buying, and we've just seen a bit of it, so I guerss we might be seeing some real fireworks today ahead of the monthly close.

This is how retail traders (losers) are positioning themselves at the moment (I hope the AUD positioning shifts for good soon, hate to see it negative....)

Oct 29, 2010 09:20 GMT+0200
READING %LONG // %SHORT

   1. AUD/USD
      47.42% 52.58%
   2. EUR/CHF
      58.09% 41.91%
   3. EUR/GBP
      52.26% 47.74%
   4. EUR/JPY
      57.85% 42.15%
   5. EUR/USD
      40.49% 59.51%
   6. GBP/JPY
      63.20% 36.80%
   7. GBP/USD
      31.14% 68.86%
   8. USD/CAD
      61.85% 38.15%
   9. USD/CHF
      74.41% 25.59%
  10. USD/JPY
      81.66% 18.34%

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