Just when it looked like it was safe to start buying the EUR, the single currency seems to have rejected earlier highs and fallen into a trading range of 1.3340-1.3370.
According to the latest data from the CFTC on trading positions, investors went net short EUR for the period ending January 8. The short positions totaled 8,000 contracts after having been long for the first time in 16 months the prior week. JPY positions continue to be short though they moved to 74,000 contracts after being as high as 94,400 in December. Australian and Canadian net long positions remained consistent at 80,300 and 64,000, respectfully over the last week.
Most traders expect a quiet North American trading session until FED Chairman Bernanke speaks later today. Most expect the comments made by Bernanke today to be USD negative if he speaks about the eventual end of QE.
Further reading: Bearish Triangle on US Dollar Index – Elliott Wave Analysis
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