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September 30, 2018 - Institutional Positions & Supply and Demand for the Majors, Gold and Oil!

The positions below represent the institutional positions held as of September 25, 2018!

This week’s report brought much clarity to last week’s massive position resizing that we witnessed. The institutions will at times use the contract expirations to allow them get out of a large position and not open the equivalent amount of positions on the new contracts as a way to re-establish themselves with that asset. We've seen it before many times and this week’s report has confirmed that they did just that. Now all eyes are on the #dollar as it is now testing that very same supply zone that was responsible for removing the weekly demand zone that was improperly formed and expected to be removed. This zone could help facilitate a move much lower in the next coming weeks, otherwise if 95.64 is taken out, it leaves a clear path for a move higher at which point the #eurusd will be dropping to the weekly demand zone that became valid this past week. So needless to say, many options are on the table for price action in the coming weeks. This is why I will be sticking with what the higher odds scenarios are.

When we examine the data for the #eurusd we have known that their long positions are still very aggressive and with this being the situation, we've been expecting them to close these positions off in preparation for the eventual move lower that we are also expecting. This week’s report shows us that more longs were added, which is what caused the weekly supply to be taken out, so no real signs of longs closing in the past few weeks, this could be an indication of their plans to close these longs much higher in the chart and if the weekly supply on the #dollar holds, this could be exactly what will be what the banks will use to get their long positions closed soon.

Some very interesting observations on this week’s data and everything is detailed on the pairs below. Have a read through and be prepared for what’s to come this week.

Magic Trader!



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