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.
Technical Tim Monday, September 10, 2012 5:07PM EST