timwest

Long Aussie Dollar (FXA) versus Short S&P500 (SPY) Pair

BATS:FXA   GUGGENHEIM CURRENCYSHARES AUSTRALIAN DOLLAR TRUST
512 9 4
This picture is worth a thousand words.

Isn't it amazing when a currency is as volatile and as directional as the S&P500?

I'm sure you have all seen this somewhere in the media, but thanks to Tradingview we can see just how tightly intertwined markets are.

Sorry I don't provide much more insight into this pairing, but sometimes just plain old "statistical arbitrage" comes into play whereby you find two markets that correlate and wait for them to get out of line with each other and then place your trade.

Lately, Australia has had some softening in its economy and it has dragged down its currency.

Last week's wide-ranging, outside-bar (a.k.a. "engulfing pattern") in the FXA             is one positive to indicate an entry into the position.

Cheers.

Technical Tim Monday, September 10, 2012 5:07PM EST
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
This pair is working finally after having a 3% drawdown initially. Now the trade is up 3% for a 6% rally in this pair in the last two weeks.
Reply
Followed.
Reply
Very interesting.
Reply
Followed.
Reply
Agreed.
Reply
Agreed.
Reply
Perfect ! just got home and have the same signal !
Reply
Agreed.
Reply
Agreed.
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out