The pair failed to reach levels lower than 1.3650 which is 40 pips away from our initial target where the pair rebounded to currently trade within a minor ascending channel with a key resistance at 1.3810. We expect the pair to fall from these levels to reach 1.3610 and then 1.3545 yet if it breaches the 1.3810 level, this will open the way for the pair to reach 1.3885 which is the 38.2% Fibonacci correction
The trading range for today is among the key support at 1.3545 and the key resistance at 1.4540
The general trend is to the downside as far as 1.5270 remains intact with targets at 1.3500 and 1.2960 Support 1.3735 1.3660 1.3610 1.3590 1.3545 Resistance 1.3810 1.3885 1.3915 1.3950 1.4000
SSI: EURUSD Retail Shorts Jump 13.4% as Pair Holds Range
Tuesday, 23 December 2008 10:55:40 GMT
Written by David Song, Currency Analyst
quote
ratio
%long
signal
EURUSD
1.39702
-1.23
45%
Bullish
GBPUSD
1.47959
-1.01
50%
Bullish
USDJPY
90.129
1.24
55%
Bearish
USDCHF
1.09065
1.18
54%
Bearish
USDCAD
1.22233
1.07
52%
Bearish
AUDUSD
0.68235
1.45
59%
Bearish
NZDUSD
0.57039
-1.14
47%
Bullish
EURUSD - The ratio of long to short positions in the EURUSD stands at -1.23 as nearly 55% of traders are short. Yesterday, the ratio was at -1.04 as 51% of open positions were short. In detail, long positions are 4.3% lower than yesterday and 2.6% weaker since last week. Short positions are 13.4% higher than yesterday and 2.0% stronger since last week. Open interest is 4.7% stronger than yesterday and 93.6% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.
GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.01 as nearly 50% of traders are short. Yesterday, the ratio was at -1.05 as 51% of open positions were short. In detail, long positions are 9.9% higher than yesterday and 6.4% stronger since last week. Short positions are 5.3% higher than yesterday and 6.0% stronger since last week. Open interest is 7.5% stronger than yesterday and 110.3% above its monthly average. The SSI is a contrarian indicator and signals more
GBPUSD gains.
USDJPY - The ratio of long to short positions in the USDJPY stands at 1.24 as nearly 55% of traders are long. Yesterday, the ratio was at 1.14 as 53% of open positions were long. In detail, long positions are 4.9% higher than yesterday and 23.9% weaker since last week. Short positions are 3.6% lower than yesterday and 1.2% weaker since last week. Open interest is 0.9% stronger than yesterday and 72.3% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.
USDCHF - The ratio of long to short positions in the USDCHF stands at 1.18 as nearly 54% of traders are long. Yesterday, the ratio was at 1.15 as 54% of open positions were long. In detail, long positions are 5.3% higher than yesterday and 10.6% weaker since last week. Short positions are 2.6% higher than yesterday and 7.5% weaker since last week. Open interest is 4.1% stronger than yesterday and 82.0% above its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses.
USDCAD - The ratio of long to short positions in the USDCAD stands at 1.07 as nearly 52% of traders are long. Yesterday, the ratio was at -1.02 as 51% of open positions were short. In detail, long positions are 4.4% higher than yesterday and 10.9% weaker since last week. Short positions are 4.6% lower than yesterday and 5.1% weaker since last week. Open interest is 0.1% weaker than yesterday and 79.8% above its monthly average. The SSI is a contrarian indicator and signals more USDCAD losses.
AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.45 as nearly 59% of traders are long. Yesterday, the ratio was at 1.31 as 57% of open positions were long. In detail, long positions are 7.3% higher than yesterday and 8.6% weaker since last week. Short positions are 3.6% lower than yesterday and 22.6% weaker since last week. Open interest is 2.6% stronger than yesterday and 92.8% above its monthly average. The SSI is a contrarian indicator and signals more AUDUSD losses.
NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.14 as nearly 53% of traders are short. Yesterday, the ratio was at -1.21 as 55% of open positions were short. In detail, long positions are 17.7% higher than yesterday and 34.2% weaker since last week. Short positions are 10.7% higher than yesterday and 29.1% weaker since last week. Open interest is 13.9% stronger than yesterday and 69.5% above its monthly average. The SSI is a contrarian indicator and signals more
The pair continues to appreciate ignoring the fact being traded in an overbough area as it undergoes a sharp incline on the short term. On the medium term howeever, the pair is targeting the 61.8% correction for the downside channel that started 15-7-2008 and ended on 27-10-2008 where this level lies at 1.4620. Today we see the intraday trend correcting to the downside yet with no effect on the short term trend but since it has reached the key resistance for the upisde channel, it might slightly decline.
The trading range for today is among the key support at 1.3945 and the key resistance at 1.4715.
The general trend is to the downside as far as 1.5080 remains intact with targets at 1.2340 and 1.2225.
Support
1.4380
1.4315
1.4285
1.4250
1.4210
Resistance
1.4485
1.4540
1.4575
1.4620
1.4660
Recommendation
...
Great British Pound (GBP)
The pair failed to gather enough bullish momentum to break several critical resistance levels. Today we are back to 1.5460 - 1.5475 levels which will determine the direction of the pair on the short term. Despite seeing positive signals that support the upside movement, the pair continues to weaken but again, the 1.5460 level will determine the fate of the pair.
The trading range for today is among the key support at 1.5345 and the key resistance at 1.5935
The general trend is to the downside as far as 1.9400 remains intact with targets at 1.4435 and 1.4095
Support
1.5500
1.5460
1.5415
1.5345
1.5245
Resistance
1.5595
1.5640
1.5680
1.5700
1.5740
Recommendation
Adjustment to the previous position after reaching the stop loss (Buy the pair above 1.5500 with targets at 1.5640 and stop loss below 1.5415) New Recommendation: Sell the pair below 1.5420 with targets at 1.5290 and stop loss with a four hour close above 1.5560
Japanese Yen (JPY)
The 87.35 level was able to limit further losses on the pair and resulted in an intraday upside channel. With 87.30 intact and not having a four hour close below it, will keep the upside trend visible on the intraday and short term. However please note that the overall trend is still to the downside.
The trading range for today is among the key support at 85.80 and the key resistance at 90.50
The general trend is to the downisde as far as 102.10 remains intact with targets at 84.95 and 82.60
Support
87.80
87.50
87.30
86.70
86.45
Resistance
88.35
88.60
89.05
89.45
89.85
Recommendation
Buy the pair above 87.80 with targets at 88.60 and stop loss with a four hour close below 87.20
