This chart is Long Canada/ Short Swiss franc..

While the short term charts show that selling Euro & Swiss weakness is problematic, buying hard breaks in the Canada or the Aussie against shorting the Euro & Swiss looks like this can turn into a big theme trade this qtr.

Risk is now a full figure, more than I generally like to risk. It doesn’t look like I’m going to get filled buying the Canada or Aussie today, however I will be patient and try and leg this spread.

From a fundamental standpoint, they both have high yielding Bonds and healthy economies. Both commodity currencies have a better chance of repaying debt and not defaulting or restructuring than that of the Euro Zone members.

Bottom line…I like the Chart pattern!