At the Open. Usual Tuesday ahead? Not likely...

09:15CET

Good morning everyone, hope you are fine. Heavy losses for AUD and EUR at the start of the day, particularly at a time when one would've least expected them to happen, i.e, at a time when Gold is again up for the day (although it has not broken the dynamic resistance line @ $1,365, from where I recommend shorts), and GBP is not 'falling' that much. The USD remains the favorite currency these days, and we've even seen new short-term highs in USD/JPY, as the unit printed 83.70 overnight. The EUR/CHF crash has put some brakes to the general USD/CHF advance, but overall the picture looks quite clear for the greenback.

On dailies, the reversal pattern seen yesterday in EUR/USD is not only targeting 1.3435 again, it is leading us to believe that the 61.8% of the last upleg, situated @ 1.3260, might just print sooner rather than later, and that's a fact. We have the unit with some positive divergences at this hour and it is Tuesday, so in other occasions I would've just issued a buy recommendation; not this time. Blame it on Ireland (that's the new game now...) or whatever you want, but even on a clear long call like the one I'm seeing on the screens at the moment I will not go with it, and rather sell rallies....even on a Tuesday.

Before closing this opening post, let me give you how retail traders are positioning themselves at this hour on brokerages. Long/Short ratio provided below. As you can see, short AUD/USD is the best thing to do for now, and the 0.96 target remains in place.

Nov 23, 2010 09:20 GMT+0100

   1. USD/JPY
      75.21% 24.79%
   2. XAU/USD
      74.12% 25.88%
   3. USD/CHF
      70.91% 29.09%
   4. USD/CAD
      61.54% 38.46%
   5. AUD/USD
      52.30% 47.70%
   6. EUR/USD
      47.17% 52.83%
   7. GBP/USD
      43.21% 56.79%

Posted via email from MT4