At the Open. EUR recovery across the board.

09:33CET

Good morning everyone, hope you are fine. Nice technical EUR recovery across the board, pretty much what I was expecting for yesterday (you know, for Tuesday being a usually USD-selling day, enough of that rule of thumb, anyway...), but glad to see it today. EUR/USD has climbed past 1.3065, and if that level holds, we may have a good follow-through in the pair, perhaps not in size, but in time, where we would see the current savaging of the unit being halted for longer than just one day. EUR/CHF nice bounce and EUR/JPY very good rally have supported the unit as well, with USD/CHF breaking all resistances and making a new high, I wonder for how long as it is creating a new divergence in the 4hr charts, which I'll report when confirmed.

In other arenas, Gold made a push over $1,395, but it was a very brief trip as the unit is now trading around $1,385.I have to say that the possibility of a H&S with a neckline @ $1,340-45 is still completely valid, therefore, and as long as we remian below $1,415, I suggest shorting this unit, as I believe we will see a very sharp correction there.

For today, I?m looking towards good retracements to buy the Europeans vs the USD, and keep an eye on EUR/GBP, as it seems to have found a good base @ 0.8340 and might be just ready to take off.

To conclude this opening post, find below the long/short retail ratio. What definitely surprises me is the change in GBP/USD to over 52% longs, as well as EUR longs rise, precisely when the unit is recovering, so keep that % in mind.

Dec 1, 2010 09:40 GMT+0100

   1. USD/JPY
      76.36% 23.64%
   2. USD/CHF
      69.24% 30.76%
   3. XAU/USD
      68.10% 31.90%
   4. USD/CAD
      59.37% 40.63%
   5. GBP/USD
      52.18% 47.82%
   6. AUD/USD
      51.60% 48.40%
   7. EUR/USD
      50.68% 49.32%

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