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.
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.
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,
Richard Smith, PhD
CEO & Founder, TradeStops