At the Open. Time to roll the USD-buying.

09:10CET

Good morning everyone, hope you are fine. Things are heating up in USD's favor. Yesterday, I told you about the upcoming EUR/USD collapse (or sell-off), due to the fact that a very clear DIAMOND PATTERN on dailies broke the lower line @ 1.3820, and prices failed to regain that line twice, meaning that at least 1.35 is next. Also, at the same time, Gold is just about to complete a very nice H&S pattern on the 4hr chart, targeting at least 1,250-60 once 1,310 neckline gives way, so I'd suggest a sell-stop order below the neckline and go with the flow.

Because that is what has to be done. Going with the flow. And going against losers, or at least not to be part of them, and with losers I mean retailers, who are beginning to show net USD short positions, for example in AUD/USD (minim target there is 0.95, so go for it and stop thinking the unit goes to parity again). Another cross that has shifted momentum is EUR/GBP, going net EUR long, which means 0.85-0.84 at least is next now.

Here's how losers (retail traders) are positioning themselves at this hour. As you can see, EUR/USD is about to shift from net short to net long, and this is going to be a massive move for a 1.35-1.33 move. Also interesting to note that, despite today's -so far- decline, the number of USD/JPY longs are beginning to decrease, and oh well, if that one changes as well, we are talking of a big trend shift, of possible some 300-500 pips, in what is going to be a mid-term momentum shift. So my advice to you now, stop selling the USD, don't be that part of the loser-retailers and start looking for long opportunities on the greenback, now that all the monopoly QE2 talk is gone and will have no real effect in the market.

   1. AUD/USD
      52.11% 47.89%
   2. EUR/CHF
      58.88% 41.12%
   3. EUR/GBP
      56.45% 43.55%
   4. EUR/JPY
      53.91% 46.09%
   5. EUR/USD
      47.48% 52.52%
   6. GBP/JPY
      58.82% 41.18%
   7. GBP/USD
      42.19% 57.81%
   8. USD/CAD
      55.32% 44.68%
   9. USD/CHF
      70.33% 29.67%
  10. USD/JPY
      76.86% 23.14%

Oct 28, 2010 09:00 GMT+0200
Reading: %LONG / %SHORT

Posted via email from MT4