There was a top extension in the $ against the Swiss franc pair yesterday. This is the second such signal in the last few days, the first being in £/$ as shown in the second chart:
We already advised buying the $ in the June 17th edition so if you are still long, sell now and reverse. The choice of currency to buy against the $ is not so easy but either of these two shown here will do. We have a slight preference for the Swiss Franc as it may benefit slightly more from the next flare-up of worry in Europe but we would avoid buying the Yen, for now.
We are still waiting for a resolution of the equity turn that was expected two days ago on the 8th July – it may have come a day late and marked the highs that we saw in US indices yesterday. Hold long positions in Eurobunds and gold.
RE
