Get Ready, Breakout Traders: AUD/USD Is Consolidating
By Simit Patel on December 31, 2008 | More Posts By Simit Patel | Author's Website
Through the end of 2012, I am one of those expecting a shift in economic power from Western economies (namely the US) to Eastern economies (China, Japan, etc). In particular, Australia, as a producer and exporter of precious metals - which stand to rise when fiat currencies are troubled - and commodities as well, may find its currency in greater demand.
So is it time to buy the Australian dollar? Let’s take a look at the price chart to get an idea if now is the time.

After being in a strong bear market since August 2008, the Australian dollar is now rallying. It is currently forming an ascending triangle/rising wedge pattern, as the chart above illustrates. The hourly and weekly chart also show consolidation, suggesting the market may be ready for a breakout.
For US stock market traders, CurrencyShares Australian Dollar Trust (FXA) is an ETF that tracks the Australian dollar.
Disclosure: Long Australian Dollar.

