.… IN AUDUSD IT SEEMS THAT WITH THE BREAK OF PARITY MARKET PARTICIPANTS DECIDED TO SQUARE THE LONGS MASSIVELY. THE DISTANCE BETWEEN THE 200 DMA AND THE MARKET RATE LOOKS A BIT STRETCHED NOW. A CORRECTION IS MIGHT BE POSSIBLE.
….. ALSO IN THE USDJPY PEOPLE ARE NO LONGER RELUCTANT WITH THEIR RED JPY SHORT POSITION IN THE RISK AVERSE ENVIRONMENT, EVEN IF THE JPY SHORT POSITION IS STILL RELATIVELY LARGE.
.... THE EUR-SHORT POSITION INCREASED FURTHER AND EXCEED THE LEVELS SEEN IN FEBRUARY THIS YEAR NOW. I WOULD NOT BE SURPRISED IF THE SHORT POSITION EXTENDED FURTHER SINCE LAST TUESDAY WITH A LOW AT 1.2640 IN EURUSD LAST WEEK. MIGHT BE THE CORRECTION SINCE FRIDAY WAS A BIT OF PROFIT TAKING.
