At the Open. Europeans vs USD game.

09:27CET

Good morning everyone, hope you are fine. It's a clear old-fashioned style market, with the 'real' majors (take out the JPY for this matter) taking the lead in the market and causing the most problems to the USD, which, by the way, is keeping itself rather afloat vs the AUD. Speaking of this pair, there is the confluence of two important technical factors: (a) the dynamic resistance line in the $1,360 level in Gold, which is putting a brake to the advance of the unit; and (b) the fact that the AUD itself is testing very important resistance lines @ 0.99-9920, let alone the fact that above there we have the 50% retracement of the last downleg and then some more with parity Fibo.

Speaking of resistances, the key pair to watch today is Cable. The unit is testing very seriously the downtrend off the recent highs, coming in @ 1.6075 today. Whatever it happens with the line, I feel that Cable can be the driving force vs the USD in today's round, so I would pay special attention to it.

As for EUR/USD, the unit has barriers (decent) only around 1,3750 from here, so not too much to comment on it, unless we get up there. SUpport remains in the 1.3620 zone.

Before closing this opening post, let's see how retail traders are positioning themselves at this hour. Long/Short ratio provided below.

Nov 19, 2010 09:40 GMT+0100

   1. XAU/USD
      75.73% 24.27%
   2. USD/JPY
      75.48% 24.52%
   3. USD/CHF
      69.16% 30.84%
   4. USD/CAD
      61.18% 38.82%
   5. AUD/USD
      50.57% 49.43%
   6. EUR/USD
      47.45% 52.55%
   7. GBP/USD
      43.25% 56.75%

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