Probably the only country that will not do any quantitative easing

...and that country is...New Zealand. And today I was alerted to a trade for next week between the aforementioned NZ Dollar and the Swiss Franc that I think will do quite well.

Fundamentally, the big drop that occurred with the Swiss Franc recently was because their government came out and surprised the markets, similarly to the way we did the other day, when they announced they would start to buy foreign currencies to stem the Franc’s appreciation. Switzerland is an export driven economy and this is a form of quantitative easing, opposite but similar to what the Brits will be doing and...what New Zealand hopes it won't need to (the idea being that that would be good for NZ's currency.) Now let's look at a daily chart of the pair with a new trade triangle issued just today (clicking on the charts give you a clearer view):



I purposely drew the trendline above all the closing bars of the bottom half of the chart AND above the close of the big red bar on January 12. Now look at where the last bar closed. It is above my line which I think is very bullish.

But then I went to check the longer term weekly chart and lo and behold, look what I found:



See the weekly up trade triangle that was issued last week? This is the text book trade for use of these indicators and normally it's not this smooth. Trade triangles are great, but they can be schizophrenic. Not the case here. Even if this were a false breakout, the chart still suggests some more upside first.