At the Open. Reversal in place?

09:25CET

Good morning everyone, hope you are fine. The end of the week brought fast and furious gains for the USD, who threatened to break major lines vs the majors, for example, 1.0050 vs CHF, 1.3185-90 vs EUR and 1.5585 vs GBP. Today we had a repetition of such threats as the Dollar progressed even beyond those limits in a very volatile overnight session, but those gains quickly evaporated as technicals ruled and so now we have an easier situation for the majors from a technical point of view, although some of them still not out of the woods yet. Important to highlight the fact that AUD hit sub-0.96 levels, printing our mid-term target rather fast, just to see things reversing in line with the other majors.

I do feel we've seen quite a lot of improvement by the USD, but the speed with which this has taken place suggests we are in need of a pause, and although Mondays are not traditionally the days where the USD sees losses, the initial comeback by the majors suggests that we may be in for a price reversal, or at least no more USD gains for the time being. Selling USD rallies is the preferred strategy for today.

Before concluding this opening post, here's the long/short % positioning by retail traders at retail brokerages at this hour.

Nov 29, 2010 09:40 GMT+0100

   1. USD/JPY
      74.49% 25.51%
   2. XAU/USD
      69.94% 30.06%
   3. USD/CHF
      69.57% 30.43%
   4. USD/CAD
      61.14% 38.86%
   5. AUD/USD
      52.24% 47.76%
   6. EUR/USD
      51.38% 48.62%
   7. GBP/USD
      47.81% 52.19%

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