A Tale of Two Dollars….

Posted by Chris Kimble on 04/11/2011 at 10:17 am; This entry is filed under Australian Dollar, Dollar Update.

For those that like to invest in currencies or were looking for protection against a U.S. Dollar decline, the suggestion was made to buy the Australian Dollar (FXA) on the channel breakout. (see post here) Since the breakout, FXA has gained a couple of percent, while investors are collecting a yield much higher than money market rates.

CLICK ON CHART TO ENLARGE

Game Plan....Currency owners are long FXA with quality price action taking place after the breakout.  Keep a 2% stop in on this position.

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One Comments

  1. Bob_in_CA April 11th, 2011 at 11:25 am

    If we hear anything about QE3 then we can kiss support at 2 goodbye.