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Why I’m so Infatuated with the Aussie dollar (AUD)!
By Sean Hyman | June 11, 2009
Why do I have an infatuation with the Aussie dollar (AUD)? It’s the clear leader this year! Why…it’s because of the superior fundamentals that I spoke of yesterday (and on many other occasions over the past few months).
The superior fundamentals alerted me to this trade long ago and I’ve been “technically trading” this far superior currency for quite some time now against those with “crappy” fundamentals. Crappy…that’s a technical term, you know. He-he!
Which currencies have horrible fundamentals at the moment? While there are many actually, I’ve focused on the U.S. and Japanese yen. Australia is up over 12% on the calendar year while then yen is down about the same! Click on the chart to enlarge it.
So I look for technical buy entries into the uptrends on AUD/USD and AUD/JPY predominately.
Since any chart can be technically traded…if you focus on the ones with superior fundamentals, you’ll find that your technical trades work out more favorably over time and that the moves that you get are larger at times than if you’d just taken “any buy signal” on any other pairs.
When I speak of fundamentals, I don’t mean a news event…or news event trading. I mean that I look at year over year (YoY) numbers on CPI, GDP,…I look at interest rates, jobless rates, etc. to put together the fundamental pieces of the pie. Then I also do this to see who belongs at the bottom of the list as well.
When I pair the “good looking fundamental country” against the “ugly fundamental currency”, I have my top pairs to trade.
Then, from there…I look for technical entries on the charts to enter these trends that the fundamentals produced.
Want to learn more about fundamentals and technicals? Sign up for an inexpensive, only forex course today and we’ll show you how: http://www.mywealth.com/currency-trading.php
Also, get a free, real time demo trading station here: http://www.fxedu.com/practice-forex-account
Sean Hyman
www.forextradingblog.com
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