An exciting buy signal showed up on my screens this week – the Australian dollar. It broke out to new highs and could easily see 20% gains from here.
My good friend Dr. Steve Sjuggerud taught me to look for investments that are cheap, hated and in an uptrend. It’s a philosophy I’ve embraced wholeheartedly … and today the Australian dollar checks all three boxes.
Here’s the latest TradeStops Stock State Indicator (SSI) chart on the Australian Dollar ETF (FXA):
Because of the recent strong surge up and out of a nearly three year trading range between $70 and $77. I love it when I see a stock trigger a new SSI Entry signal, dip in and out of the Yellow Zone but not get stopped out and then head solidly higher. It’s a powerful signal.
You can see the breakout very clearly on this volume-at-price (VAP) chart of FXA as well.
The time-cycles on AUD are supportive of higher prices through the rest of this year too.
Here’s the latest TradeStops SSI chart on USD. It’s solidly in the Red Zone.
It’s also wintertime over there right now. I just checked the weather in Melbourne. It’s partly cloudy with a high of 55 degrees Fahrenheit. Sounds pretty nice compared to sunny and humid Florida.
It might be a good time to head to the land down under before the temperature – and the currency – start heating up.
Have a great weekend,