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Time to Re-Enter a Long Australian Dollar Position

|Includes: CurrencyShares Australian Dollar Trust ETF (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.