Special Bulletin: Tuesday evening 8:20 PM Pacific standard Time.
We think it is imminent the euro will generate a short-term buy signal, which will reverse the short-term sell signal generated on November 1. The euro is already on an intermediate term buy signal. The euro has penetrated two important benchmarks Tuesday evening, and the exchange preliminary stats show that open interest increased by over 10,205 contracts, which relative to volume is 120% above average. We advise clients to liquidate short call positions and long put positions in the euro immediately. Also, if any short futures positions are open, liquidate these as well.
Additionally, the long USD/JPY recommended last week should be liquidated because with an advance in the euro, the dollar will be impacted significantly. The position is profitable and we recommend moving to the sidelines. We discourage being long EUR/JPY or GBP/JPY due to their significant overbought condition.
If you have any question, clients of OIA Direct should contact me 415-440-1551.