At the Close. Good USD recovery in the end.

18:10CET

As the market seems to have gone home already (volatility has dried up in the last couple of hours), it's good to give a bit of a recap of how the situation stands at this point ahead of the next week.

The USD has made a very good comeback vs the majors after a threatening start of the day, where Cable got momentarily above a key downtrend line off recent highs (coming in @ 1.6065-70), Gold threatened the key dynamic resistance @ $1,361 and AUD/USD looked poised for further gains above 0.99, while EUR/USD was tripping above stops above 1.37 easily.

Finally, though, the next round of Fibo levels did not come to play and longs got trapped as the USD made a good comeback, gaining good ground, particularly vs the GBP and the CHF, where the effect of the rise in EUR/CHF has propelled, for almost the first time ever on my records, USD/CHF to pass from extremely OS to extremely OB in the same session, hitting 0.9880 in the morning, just to reverse course and hit 0.9990 again in the afternoon, where techs played their part and the unit went down again.

Technically speaking, there are two factors that I consider as leading at the moment: first, the key dynamic resistance line in Gold, and second, the dynamic resistance in USD/CHF, both of which have different implications for the course of the USD, and we have yet to see which one will be the key. Add to this the trendline in Cable, the most technical pair this morning, coming in @ 1.6060 on Monday and whihc will also be a key factor short-term for the USD.

Before calling it a week, please find below the retail positioning at this hour with the usual long/short ratio. I wish you a good weekend everyone and I look forward to your company on Monday again. Stay tuned to real-time trading tips @ twitter.com/ctainvestor and investors-europe.com.

Nov 19, 2010 18:00 GMT+0100

   1. USD/JPY
      75.71% 24.29%
   2. XAU/USD
      73.89% 26.11%
   3. USD/CHF
      69.29% 30.71%
   4. USD/CAD
      61.66% 38.34%
   5. AUD/USD
      51.16% 48.84%
   6. EUR/USD
      48.25% 51.75%
   7. GBP/USD
      44.54% 55.46%

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