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Posts by "rezz"
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8 Posts by Anonymous "rezz":
You can view it for other pairs as well.
What is revealed is what intuitively should be clear, but its nice to see quantification of open positions and also open orders. For EURUSD over 68% are short and there is a lot of density of open buy orders (open states in FX universe) at various levels below current market. This could be new money ready to buy plus it could be the out of money shorts (seen clearly in the distribution graph) deciding to close their positions by buying back, which gives the pair its buoyancy. In short term it will take alot of "energy" to break through these levels it seems.
But time for caution.. JP Morgan will announce results tomorrow morning which could lift markets for the day (Risk positive, USD negative?), but countering that Obama is supposed to talk about a deficit reduction plan which could impact markets too, and be dollar positive for a change?
USD the new Peso thanks to Bernanke. Well thats what he wants, except as is evident in the 3rd world countries, printing money never created jobs. They better fix the structural stuff, because even before QE, US firms and the rich had plenty of capital to deploy, just limited good ideas for business formation.
Ironic that everyone was blaming the retail investors who were supposedly unwinding their positions to fund their construction projects back home. Well did they change their minds and go back to long US dollars!! I think not.
This just proves that Hedge funds are quite nasty.. preying on the japanese in light of what happened. Lost my respect for them.
It is hard to imagine new rational entrants shorting usd/cad at these levels. Too many weak longs in USD/CAD at the moment perhaps??