EURNZD - What a H&S and on the monthly chart!? This thing is about to fall badly... The next time the euro rallies and fizzles out, this is a shorting magnet till the weekly downtrend channel is broken above.
I continue to fancy long EURAUD for a contra play - it is the most oversold euro cross. RSI is oversold on all timeframes i.e. daily, weekly and monthly. Last time when EURUSD (May 2010) and EURCHF (Aug 2011) RSI aligned this way we all know what happened...
It is very rare to get an oversold RSI along multiple medium and long term time frames. The contra play is always profitable. But don't try and catch the falling knife. Just wait for the news that creates the rally... The rebound should give gains of at least $1000 or 1 big figure depending on the lot size.
When the rally fizzles, short again but with tight stops and ride it down and wait for the next rally and reverse. 2 or more RSI bounces confirms a medium term bottom and a medium term trend reversal... If one plays this cross well this year, it could generate a lot of pips esp when AUD starts getting sold later in 2012.
Another long term play will be AUDCHF. Wait for the medium and long term RSI timeframes to align at overbought levels. A lot of shorting pips coming up
Levels to look for is anything above parity (1.0000). However short term players can look for shorts since the daily chart is so overbought. As well as NZDCHF. Wait for RSI divergence since bullish momentum is strong...
Finally NZDCAD is another shorting magnet long term. Short term traders should be looking for shorts as per the daily chart. Wait for RSI and stoch divergence since bullish momentum is strong...
Now if only fx brokers would be give out trade setups freely without complicated trade signals blah blah... Bure kabisa...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!