Dear Traders,

Here is a quick post on the FX Signals Front, I began with some quick fundamental tidbits for those who may not understand why the AUD/USD continues to move higher, while the dollar lower.

FX Signals not Just Technical for me...Fundamentals of AUD/USD:
To begin I want to express some key factors in the Australian economy at the moment are commodity prices, global growth and interest rates.

The effect of commodities on the economy comes from both demand and price; since 2003, commodities have doubled in price this has brought more revenue to Australia. Trade is at its highest level in over 60 years, and has generated a high level of investment, employment growth, etc...

The growth in the global economy has generated a higher demand for Australia’s commodities, with globalization having boosted demand also from developing countries. These economies now account for 60% of global GDP.

On the Fundamental Front you can't go wrong in my opinion, looking for longs on the AUD/USD when they present themselves!

FX Signals

On 1/16/2013, I sent an Fx Signals Alert to all Members that I had a 'Buy' as one of our FX Signals on the AUD/USD trade. STOP HAS BEEN MOVED AS OF 1/16/2013 @6PM EST TO BREAK EVEN SUGGESTED.

I first took this trade with the thought that we would hit our target in Asian session on 1/15/2013. The AUD numbers came out well yesterday, but not enough to move us past the 1.0580 level. We have been chopping ever since. Today, I decided to keep this trade on, despite the unemployment numbers out of Australia in Asian session today. I held based on more than one reason, since the 4 hour and Daily Charts are both technically setup.

On top of the technical makeup of this trade, we have plenty of reasons from a fundamental standpoint to stay in this trade. Here I only listed the key technical aspects of this trade. This trade has a Fx Signals Target of 1.0590, so this is sure below the norm when it comes to swing trades for us.

Short Fx Signal:

If the Unemployment Rate shows any signs of deterioration, I will not hesitate to go short with a stop above 1.0600 and a Target of 1.0420 Short Term. We will see.

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B.T.