I find this an interesting chart.
We see that the Swiss Franc has blown through the 50 AND 100 day Simple Moving Averages after a long period of tracking lower as the Euro fell. We also today had what looked like a “Whale” selling out a gold position and covering a Euro short.
What does all this say to me?
Most likely some large hedge fund(s?) clearing out of a “long gold short Euro” position and repatriating the profits to “a safe place”.
So I’d speculate that the Euro down trade is likely over (and the US$ up trade with it). I’d also already said I thought it was time to be out of gold (in the WSW posting). A good call… And for now, at least, it looks like the Yen, the Swiss Franc, and US Treasuries are the place to park things between trades.
I would caution that with RSI at 80 there is already a bit of “heat” in this trade. It’s not an ideal entry point. In theory, the price ought to come back to the SMA stack from the top side for a confirmed entry. Unfortunately, the currency markets are often driven by political things (like central bankers) and so do not always behave in an orderly fashion…
What to do? Start “scaling in” to Swiss Francs is how I read this.