I think the EURCHF cross will soon determine whether the euro rallies to the moon or hits the bunkers really hard. The daily and weekly bollinger bands are narrowing so tightly. A break out is looming... With the USD index still bullish on the weekly, the USD should rebound higher in coming weeks. The RSI forecast shows USD strength to top out around July 2012. Yep, I'm still USD bullish. Once EURUSD closes that 1.25 gap, then and only then will I shift my euro stand.
USDJPY managed to close yesterday above 200 day SMA. Bullish long term signal. Look for longs against yen crosses. The weekly on USDJPY is spoiling for breaking out to the upside. Daily is overbought, waiting for pullback at 77.70.
Has anyone noticed how many kiwi crosses (NZDUSD, NZDCAD, NZDJPY, NZDCHF) are overbought on the daily?! Kiwi will crash big time when the shorts take over. Reminds me of aussie bullish extremes back in 2010.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!