AUTOREFRESH 
The FX market takes a long time to square up
By Sean Lee || May 19, 2010 at 21:45 GMT
|| 12 comments || Add comment
EUR shorts were all at time record levels late last week according to IMM data and AUD longs were also at significant levels. Once the market tries to undo this imbalance it can take a long time. There will of course be pullbacks but those trying to pick interim tops in EUR/AUD will need to exercise extreme caution. We can expect further whippy trading conditions but selling AUD rallies still looks like the sensible strategy whilst this unwind is taking place.
Good morning Sean. Thanks for your inputs, I have been following your comments and discussions. I am currently short on EUR/JPY and am nursing a loss. As the central banks are intervening do you think EUR/JPY will go up much further this week? I got short at 113.63 and thinking whether to book my losses or is there a chance of a pullback? Your opinion is much appreciated.
Sean, in your opinion what sort of target level would you think is good to sell AUD/USD?
mornin sean san
glorious morning indeed
all in the money of my positions,
still got the nzd cross but covered the aud cross.
very handsome indeed just like clint eastwood
mostly tks to you.
Morning Kaushik, nice to hear from you. I am still quite bearish overall on EUR/JPY but now that we are seeing serious short covering on EUR/CHF and EUR/AUD, the same might happen in EUR/JPY. The risk is for further short covering rallies imho. I’d personally cut the position and look for more clear cut opportunities. Apologies in advance if this opinion is really bad!!
Cheers Haniff, I’ve also had a very lucky run over the last week. Let’s hope it continues!
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G’Day Sean! Still hangin’ on for .8250ish. I feel like Crocodile Dundee though every time we move up a bit, “That’s not a rally…”
I think resistance should be firm in & around the obvious .8575 ‘scene of the crime.’ I’ve moved my stop to b/e @ .8773 . Good luck today.
G’day Zac. Well done and hang on if you can. There might be a lot more to come as the market is nowhere near prepared for an AUD sell-off. Put a ‘stupid’ bid in at 7850 and you never know what might happen if this unwind picks up steam!!
I like the way you’re thinking
Doesn’t look half bad on the weekly either… http://img200.imageshack.us/i/audusd051910.png/
Is that the month the meteor hit? Nice triangle.
Thanks Sean