Tiho at A Short Side of Long is my personal man-crush for being one of the most astute value investors that I know of, constantly flagging out extremes that could be the turning point of a major trend reversal.

He spotted this extreme in the currency market that I think mean-reverters might be interested in taking a look at.

And no, it is not the EUR/USD. The EUR has a very serious fundamental reasons why it is sinking and the tail risks are actually pretty fat in my opinion.

The market that he has singled out is Australia. To his aid, he has a trio of charts signalling extremes in the stock market, consumer confidence and the currency.

Personally, I see a few ways to play this potential trade.

1st idea: Look for a bounce of the support in Australian equities and go long. The risks are of course that …