Almost a month ago I highlighted that the Australian Dollar was breaking out of a multi-month sideways trading range. You know my boring ole strategy by now …”Buy the breakouts!” (see post here) Below is a look back over the past month, comparing the Australian Dollar ETF (FXA) to the S&P 500.
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Since the suggestion to buy FXA, it has been a good 30-days. This gain reflects the the “Power of the Pattern” per a breakout of a 5-month sideways channel! This strong of a gain could very well be suggesting the U.S. $ will continue to struggle!
Game Plan…Remain an owner of FXA with a 3% stop.