Currency And Country ETF: Australia

Figure 1 is a weekly chart comparing the Currency Shares Australian $ (symbol: FXA) to the i-Shares MSCI Australia Index Fund (symbol: EWA). As you can see, these two instruments are highly correlated across multiple time frames.

Figure 1. FXA (blue line) v. EWA (orange line)/ weekly

I have a "sell" signal on both FXA and EWA, and a "sell" signal is a sell signal. At best expect (or hope for) a trading range; more likely, an opportunity to buy at lower prices is ahead. How far the sell off goes is yet to be determined.

It is nice to see these two instruments continue their correlation thus confirming the moves in the other.