AUTOREFRESH 
Traders tending towards short AUD/USD, EUR/USD positions
By Sean Lee || January 21, 2010 at 22:56 GMT
|| 8 comments || Add comment
I’ve spoken with three prop traders already this morning and the general tendency is to be short AUD/USD and EUR/USD. The reasoning is that these are potentially the best plays if a lengthy period of risk aversion develops, similar to what happened around the time of the GFC. There does not seem to be a whole lot of conviction behind the positioning, more like going short because the market is going down.
Have a dry weekend all 
That is no way to trade in my view. I’ll stick to the fundamental slightly longer-term technical analysis. I don’t trade sentiment or news. It is always temporary.
I think there’s a tendency to avoid being short usd and jpy over the weekend as well. People tend to be less long risk over the weekend, to avoid geopolitical risk exposure. I think that’s why for the past few months the risk trade has tended to come off on Fridays and return on Mondays. I wouldn’t want to walk in on Monday morning after some geopolitical event and find that a eur/jpy or aud/jpy or whatever position had gapped down significantly against me. Depending on the situation, accounts can get blown out that way…
Hi Sean,
Do you see a bounce towards .9080-9120?
I am agonishingly close to my S/L than to my TP for my trapped longs. And Gold… What a journey south it has taken over the last 3 days!!
Market always seem to rally when most of the people are short i.e. just before Xmas we were talking about high 80s, low 70s and within a week we were .93.
Wondering if similar situation pans out this time too?
USD/JPY risk looks to be heavily weighted to the downside Puks what with risk aversion and all. I wouldn’t rule anything out but if 90.00 goes then I think we’re in for another downleg. Keep stops tight and live to fight another day is the best advice I can give in these markets. There’ll be lots of other trades.
Thanks Sean. Brought my S/L (doube size hedge) forward to .8985.
I would have thought with the barrage of bad news for USD, Gold would rally but its not…..
What does that mean?
China and India heve been rumoured for months to be on bid at $1050- if they don’t appear then gold might be in a spot of bother.
Well there’s still $40 odd in it.
Maybe that’s what it’s all about.
I’m short EUR/USD and I am NOT covering until 1.37…my conviction is next weekm as a time frame