At the Close. CHF, Gold...and something else.

18:43CET

It (perhaps) is going to be the story of the year-end. EUR/CHF new record lows day after day are evidencing that there is at least one cross of real interest to blood-seekers and that they are willing to do anything in their power to push it to extremes before anything meaningful can be seen in reverse.

Indeed, 1.2633 is the new record low to note down, maybe the last one for now, maybe not. One thing is for sure, there is plenty of trading in that cross, and that is affecting its two major components, i.e, EUR/USD and USD/CHF. However, USD/CHF is being a 'side effect' on the process, as it is mainly a EUR thing altogether.

EUR/USD has tanked to sub-1.31 levels, although is trading above the 200 daily SMA @ 1.3102 as I write this, and it just gave me a false trading signal in the 1hr chart as I had a long trigger that did not materialize. However, a new long trigger could be seen shortly, and that might just cover the earlier loss, any new stop on longs must be below moderate support 1.3060.

GBP/USD, on the contrary, gave us 3 good technical triggers that more than compensated for the EUR/USD single loss. As I had reported on the morning's opening commentary, I was looking to short the unit @ 1.5570 and then buy around 1.5525 as those 2 levels should work on a first attempt and so they did. The break of the trendline off Friday lows intraday was more than a good signal to go with and as I reported via twitter (www.twitter.com/ctainvestor), we had a good technical trigger to follow there. The final target @ 1.5485 printed fast in early afternoon, when the USD saw some buying vs the majors.

Not worth talking about the JPY these days, although I feel we may see the crosses there explode anytime soon, for on a mid-term basis they are starting to look rather bullish to me.

Before concluding the day, let me give you how retail traders are positioning themselves long/short on majors. Keep also an eye on Gold, the first attempt to break the resistance line off the recent highs failed, but the unit is still close to it. Thank you for watching the site, which is brought to you by good offshore brokerage firm investors-europe.com.

Dec 20, 2010 18:40 GMT+0100

   1. USD/JPY
      75.84% 24.16%
   2. USD/CHF
      73.49% 26.51%
   3. XAU/USD
      69.98% 30.02%
   4. USD/CAD
      59.77% 40.23%
   5. GBP/USD
      50.26% 49.74%
   6. EUR/USD
      47.03% 52.97%
   7. AUD/USD
      45.20% 54.80%

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