Australian Dollar’s Rebound Faces Critical Test Against U.S. Dollar

(This is an excerpt from an article I originally published on Seeking Alpha on September 12, 2012. Click here to read the entire piece.)

In one more day, the Federal Reserve announces its next decision on monetary policy. In anticipation, the dollar (UUP) has traded lower and lower.


U.S. dollar index follows through on breakdown below its 200DMA
U.S. dollar index follows through on breakdown below its 200DMA

The Australian dollar (FXA) has been one of the beneficiaries of dollar weakness. {snip}


The Australian dollar has become resilient against numerous headwinds
The Australian dollar has become resilient against numerous headwinds


Weekly chart shows the current downtrend that began with last year's historic highs against the U.S. dollar
Weekly chart shows the current downtrend that began with last year's historic highs against the U.S. dollar

Source for charts: FreeStockCharts.com

{snip}

Be careful out there!

(This is an excerpt from an article I originally published on Seeking Alpha on September 12, 2012. Click here to read the entire piece.)

Full disclosure: no positions

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