I wanted to investigate a bit more @pelagiusz strategy.
I'm working on a prototype that shows the currency indexes in a different way.
To make it simpler to read I made a chart that oscilate around 0
- when it's above 0 the currency is going up, when it's below 0 it's going down.
- As it approaches 0 the trend slows down, when it moves away from 0 the trend accelerates
On the chart below you have CAD and JPY.
The more the currency is far from 0 the strongest is the trend. If you add all the major currencies on the chart you can see that right now the strongest trend is NZDCAD (downtrend).
But CAD is slowing down.
CHF is also strong and moving away from 0. so NZDCHF might be a good pair to sell