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Simit Patel's  Instablog

Simit Patel is an individual currency trader who focuses on analyzing the EURUSD exchange rate. He previously spent four years working as a currency broker and analyst; he currently is a contributing analyst at InformedTrades.com (http://www.informedtrades.com), where he offers commentary about... More
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Crisis Investing
  • Time to Re-Enter a Long Australian Dollar Position 1 comment
    Jun 29, 2009 05:47 PM | about stocks: FXA

    I placed a small position going long AUDUSD; I got in at 8050, with a stop at 7940. Here's the rationale:

    1. Fundamentally, I like AUD relative to most major currencies over the next three years. I think demand for commodities will help the Australian economy, as well as the fact that the Australian economy was not hit nearly as hard as the rest of the world in the Crash of 2008.

    2. Technically, the moving averages have just turned bullish, after a period of convergence.

    This is the kind of setup I really like; I like to see convergence and then a move towards what I perceive to be the long-term trend.

    The chart below illustrates.

     

    Themes: inflation, commodity currencies Stocks: FXA
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This post has 1 comment:

  •  
    Have you studied the change of Net long positions of AUD/USD?. What is the risk involved if we enter to long positions with 100K USD
    2009 Aug 06 04:40 AM Reply
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