As the Dollar has fallen, currency ETFs have been in rally mode and are now trading at their highest levels in months. As shown below, many currency ETFs have risen sharply in the past couple of weeks and are trading well above their 50- and 200-day moving averages. On a percentage basis, the ETFs haven't done as well as stocks, but relative to their historical moves, their performance has been extremely positive.
The Australian Dollar ETF (FXA) has gone from $65 to $85 since March. The Euro ETF (FXE) has gone from $130 to $145, the Swedish Krona ETF (FXS) has moved from $115 to $140, and the Franc and Yen ETFs (FXF and FXY) have each risen about $10. Will these uptrends continue, or are we due to see a reversal with these currencies moving lower versus the dollar?
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