Its been a blisteringly positive start to the year if you were short euros and long assets.
Volatility remains at very elevated levels and trends are long with very few corrections across asset markets. Leverage remains at record levels and many instrument trade levels are at record level extremes. Ie long US$ positions. None of these individual items confirm a reversal in them selves but they do confirm that many are over exposed to a one way bet and not positioned in any way for a correction to trend.
One way or another we are in dangerous waters here. We have the Greek election results over the weekend which makes holding euros pre the event impossible as who knows what statements and counter statements emerge on the result.
For this reason i release the CB technical report here early from Fitzpatrick. His focus is on the eurusd for obvious and timely reasons.
In spite of today’s disappointing price action I suggest now is not the time to sell gold pre Sunday’s results.
The regular technical plus release will follow Tuesday.
All the best
Rich