Aussie dollar breaks downtrend - buy golds

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    Since September of 2011 A$ has been in a major downtrend. In September of 2014 that trend accelerated sharply downward from around $0.93 to around $0.756. The move above $0.78 and recent consolidation at current levels has broken the near term down trend (but not the overall bearish pattern that is in place since 2011). So we could go into the low $0.80's very easily.

    IMHO speculative hot money is rushing into the A$ from a very overbought US$. A significant chunk of this hot money will flow into resources and expect to see a lot of near vertical take-offs in the resource sector. My favourite at the moment is CAV which is very tightly held and is primed to go vertical, but you can probably find lots of other stocks in the same sector. Good luck to all longs.
 
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