AUDUSD and NZDUSD may have topped 2016. There is also a broader picture since AUDUSD has demonstrated a high positive correlation to China’s stock market.
Your mission is to determine whether they are going to follow-through with a breakout or staging for the mother of all corrections. For your entertainment. (Also bonus stock chart) Log-in required.
Everything is highly correlated these days so when 4 major stock market indices are hinting at the same kind of outcome you have to pay attention. I read that as confluence not coincidence.
EEM, HSI, SiMSCI and China A50 are strongly correlated. They appear to be topping/have topped which is a confluent signal that should not be ignored.
Overlay shows AUDUSD, CSI 300, China A50 high positive correlation. Divergence signals turning point; weak China indices points to AUDUSD weakness also.
We look at China A50 price action on 5-minute chart, 40 minutes before People’s Bank of China cut its reserve requirement ratio. For traders who look for telltale signs before high impact news.
EEM, HSI, SiMSCI and China A50 are showing remarkable strong correlation since Jan 2015. In meantime, futures performance indicates, long gold, short NZDJPY, short WTI to be right direction ytd.