Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by 
On March 3th. (see earlier post) I wrote about comparing the RSI’s of a number of currency rates in order to see quickly how strong or weak they are.
On March 3th. (see earlier post) the lowest RSI value was 25 for the NZD/USD at 0.4932 and last Friday the RSI level was 82 at 0.5581 while the USD/JPY on March 3th was RSI 80 at 97.50 and last Friday the RSI level was 43 with 95.95.
Not all currency rates goes so nicely but it’s a good first step analyses when overlooking a number of currency rates in a basket in order to control trading risk.
In general, the RSI > 50 means more upward power than downward power and v.v. if RSI < 50
You can check this link: http://www.2hedge.com/mmfxhedge.html if you like to have a look on the four major currencies with their average hedge level percentages (bottom pane).
This is the percentage to hedge to reduce corporate currency risk and a hold an average exchange rate for paying or receiving foreign currencies.