NZD/USD

One to watch...



dl.dropboxusercontent.com/u/24866576/201...20NXDUSD%20daily.png

maybe 1 push up more, but a channel will generally break in the opposite direction, so i would expect this to be testing the lows at some point in the near future

Long @ 0.79950
SL 60 points

Looking at Oil, Copper, $ pairs and commodity pairs, indices, 10 year bonds and a couple of other things.
Markets are built up over years not weeks or months and when they corrolate this takes years of monetry policy making and establishing. Hence correlations take years to make and years to break.

When divergences start to happen it is a warning that part of the market is not happy and is also a leading indictor.

If the NZD, CAD and AUD were to drop like a rock and Equities remain going up, I'd be very close to pulling the trigger on closing my longs or getting ready for the big Short.

It's just a warning at present, so keep an eye on stuff so as not to become the perma bull in a bear market turn.

it looks like it bounced nicely, but why would you expect markets to fall, its very bullish trend on indices

The NZD/USD sold off today. The numbers from last night out of NZ were not that bad. So the fall in the NZD pairs was a little hasty and a bit over done. However, all of the commodity pairs came tumbling down, so the NZD pairs were in good company.
The question is, does it continue and signal (early) that the equity markets are about to take a nose dive, or does it bounce on a massive trend line. We are literally on the cross roads of a major decision.

Here's the long view ^^

Here's the near term cross roads