At the Close. Heavy USD selling.

18:30CET

Well, choosing the title for this closing post hasn't been much difficult, as we are in the middle of a fast USD selling across the board, with the early indications given by the AUD/USD when it broke above 0.99 quickly followed by EUR/USD, gaining over 200 pips in the day from 1.32 to 1.34, and Cable, passing the 1.5850 mark with ease.

However, this looks to me like 'too much too fast', as we have the units way overbought (OB) on an intraday basis and we should definitely should see some corrections if there has to be a healthy move in prospect. I think that if anyone is trying to short the USD, should wait for at least 40-50 pip retracements from here or else get exposed to a tricky entry level, as current levels are not attractive to do so.

More so, I'd take a long USD/CHF here @ 0.9675, stop 0.9645 and I would go for a new test above 0.97 (this has been sent in real time through twitter), I am not in any way fond of the currencies making further progress vs the USD today, or at least if they do so, to do it in a very modest fashion.

Before closing, let's take a look @ long/short retail rations in FX. That's it from me, Tony Juste, for today. I look forward to your company tomorrow here @ CTAinvestor.com, a site brought to you by www.investors-europe.com.

Dec 13, 2010 18:20 GMT+0100

   1. USD/JPY
      73.50% 26.50%
   2. USD/CHF
      72.06% 27.94%
   3. USD/CAD
      71.04% 28.96%
   4. XAU/USD
      71.00% 29.00%
   5. AUD/USD
      45.69% 54.31%
   6. GBP/USD
      44.89% 55.11%
   7. EUR/USD
      42.23% 57.77%

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