Let’s have the first trade of the week - NZDCHF Short.
Here are a few reasons that I think this is a wining trade.
First let’s look at NZD:
1) This is weighted average NZD versus other major currencies. See how it made a false breakout of the major channel and the black flag. Currently it broke the other side of the flag and retested the lower band of the flag. I expect weaker NZD which is good for our NZDCHF Short trade.
2) This is NZD . It has the same message as above. Breaking lower and continuation.
3) This is NZD bonds Yields. It dropped today by 1.72% and I expect it visits the lower band of the channel. Again signals cheaper NZD.
Now let’s look at CHF:
4) This is weighted average CHF. It is sitting at a major support and I expect a bounce as early as tomorrow as it is the first day of the month.
5) Last chart also has the same message. It is CHF .
PM me if you would like to hear more about entry signal, SL and PT.
If you ever wondered whether this flag will be broken to the down side, I would recommend to see the following which is NZD futures and is exactly the same as above but with broken Flag to the downside. We might see the same thing
Also see how the NZD index broken the resistance and is not carrying up on rising. Opposite relation is expected.
For Yields I think you agree with me. It is heading to the red circle. Right?
Same with Bonds. It is heading up and opposite relation is expected.
Now relax :)