At the Open. USD under pressure.

09:47CET

Good morning everyone, hope you are fine. Like yesterday, the USD has started the day under some pressure (although less than what we saw yesterday)and has posted new intraday lows vs the Europeans, although, as I said, nothing dramatic at the moment.

Honestly, the idea to short the USD, particularly vs the CHF, at/around these levels is of little attractive to me. In fact, I would definitely suggest, as sent via Twitter (ctainvestor) to all the followers, to long USD/CHF @ current rate around 0.9645, put a stop clearly below 0.9625, and target for a bounce above 0.97.

It is the Swissy the most interesting major cross for the time being, at least this is what I think. I would like to think otherwise, and get ready for USD short positions, but prices have not retraced as I wanted them to overnight, and they look rather expensive to me even to initiate an intraday trade.

EUR/USD above 1.3420 or Cable above 1.5870 are simply not levels where I will short the USD, let alone initiate a positional trade. Therefore, I will stick to my plan for today and try to trade fast contras on USD/CHF, trying to get as low and around 0.9630-40 as possible, looking for a modest spike where I can unload the trades.

To conclude this opening post, here's how retail traders are positioning themselves at this hour long/short:

Dec 14, 2010 09:40 GMT+0100

   1. USD/JPY
      72.72% 27.28%
   2. XAU/USD
      71.34% 28.66%
   3. USD/CHF
      70.71% 29.29%
   4. USD/CAD
      67.41% 32.59%
   5. EUR/USD
      49.51% 50.49%
   6. GBP/USD
      47.48% 52.52%
   7. AUD/USD
      46.35% 53.65%

Posted via email from MT4