Aussie Dollar Showing Signs Of Recovery
Mike Paulenoff | Oct 30, 2014 01:23AM ET
Just in the last few sessions, the Rydex CurrencyShares Australian Dollar Trust ETF (NYSE:FXA)) has started to accelerate to the upside from its month-long bottoming pattern, which increasingly is starting to look like a significant secondary 2014 low.
In other words, the fact that the FXA did not implode after violating its January 24, 2014 low at 86.98 is a conspicuous signal of the relative strength or otherwise evidence of downside exhaustion ahead of a period of potent upside recovery.
For the time being, I am looking for FXA to recover into the 91.00-92.00 target zone within a medium-term recovery-rally scenario.
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