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Aussie Dollar Showing Signs Of Recovery

Published 10/30/2014, 01:23 AM
Updated 07/09/2023, 06:31 AM

Daily FXA

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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