Simit Patel's  Instablog

Simit Patel
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I'm a precious metals and energy investor as well as a currency trader who combines analysis of geopolitics, monetary economics, energy technology, and technical price patterns to develop trading and investing outlooks. I trade/invest in all timeframes -- from intraday trading in parabolic... More
My company:
InformedTrades Gold Club
My blog:
InformedTrades - Learn to Trade Forex & CFDs
My book:
Wealth Management in the New World
  • Time to Re-Enter a Long Australian Dollar Position 1 comment
    Jun 29, 2009 5:47 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.

     

    Stocks: FXA
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  • sajay
    , contributor
    Comment (1) | Send Message
     
    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
    6 Aug 2009, 04:40 AM Reply Like
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