Has the short covering begun?...Check the COT report

As discussed in one of my previous posts (http://qitrading.blogspot.co.uk/2012/05/watch-short-coveringsugar-now-in-play.html) the market was heavily overweight, as you can see from the recent strong directional moves in currencies against the greenback. Therefore, the small rallies we have seen this morning on the back of positive news coming out of Europe, has led to some short covering to bank some profits. Things to look out for: - Today is a France/Germany and US holiday - Check the COT report (http://www.cftc.gov/dea/futures/deacmelf.htm) to see what's happening in the bigger picture - Large specs are showing a 5:1 short ratio on Euro Currencies to look at: The commodity currencies and their crosses are always one to watch when trading risk sentiment (risk on/risk off) which is the current market condition considering the Eurozone issue. There have been technical setups on NZDUSD, EURAUD, GBPNZD which have all come to fruition. I will endeavour to post some charts up later this week.