MI:Australian Dollar Trust (FXA) Showing Bearish Technicals With Support At $104.56
Australian Dollar Trust (AMEX: FXA) closed Thursday's trading session at $105.58. In the past year, the ETF has hit a 52-week low of $83.50 and 52-week high of $110.18. Australian Dollar Trust (FXA) has been showing support around $104.56 and resistance in the $106.10 range. Technical indicators for the ETF are Bearish. For a hedged play on Australian Dollar Trust (FXA), look at the Dec '11 $105.00 covered call for a net debit in the $102.48 area. That is also the break-even price for this trade. This covered call has a duration of 176 days, provides 2.94% downside protection and an assigned return rate of 2.46% for an annualized return rate of 5.10% (for comparison purposes only). Australian Dollar Trust (FXA) does not pay a distribution at this time. [FBB-Seven Summits Research]
