At the Open. A usual Tuesday ahead?

09:03CET

Good morning everyone, hope you are fine. Yesterday I called it a 'classic' Monday, referring to the fact that the USD usually gains ground on Mondays and so it proved to be the case. Tuesdays, in the other hand, are generally USD-selling days, so I'm curious to see whether that trend will persist today....or not.

EUR/USD starts the day around 1.36 after having hit a 1.3559 low, i.e, very close to the important 1.3550 support level, from where it has spiked almost 100 pips to 1.3650, in what it has been a massive USD-selling hour (noon Chinese time), for Cable has hit 1.6090 off 1.6040 levels and AUD/USD has seen 0.9890 off 0.9815. Speaking of Cable, the unit should see volatility picking up big time today as we have the release of the CPI figures @ 10:30CET.

Again, the non-healthy behavior by the usually two lagging USD pairs, i.e, USD/CHF and USD/JPY (and particularly the former), may put some weight to the USD advance for the time being. I'd like to see a better correction in the Swissy off that 0.9850 tough resistance level, but so far nothing good has come out of it.

Speaking of 'better moves' to be seen, the short signal in Gold (triggered @ $1,370), has so far yielded poorly, and the unit is resisting to break 1,350 en route towards the key 1,315 neckline, where a bigger formation might be shaping. I feel, however, that it will be tomorrow or the day after when we will see that pattern kicking in for good. As usual, here's a long/short positioning ratio by the retail hands at this hour, surprising to see EUR still with more shorts than longs after all the drop it's seen.

Nov 16, 2010 09:00 GMT+0100

   1. USD/JPY
      77.64% 22.36%
   2. USD/CHF
      72.73% 27.27%
   3. XAU/USD
      71.98% 28.02%
   4. USD/CAD
      69.78% 30.22%
   5. AUD/USD
      50.29% 49.71%
   6. EUR/USD
      49.92% 50.08%
   7. GBP/USD
      40.33% 59.67%

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