Friday

EUR/AUD Crash

1 Comment April 10, 2009 – 10:21 am |   | Permalink |  Print This Post |

As expected, the Euro/AUD pulled back to reflect fundamentals. We closed our last position at 1.825 (entry at 2.017: hence booking a profit of $1920). Those who are greedy may hold and aim for <1.80 (likely in our view - next support is 1.77: so thats $550 worth of “spare change” we are giving away!) - but remember our Rule: A Good Trader Always Leaves The Icing on the Cake for the Next Trader. We look to get back in at ~1.87 +/-0.2 (1.84 would be very achievable). Our Euro/GBP positions are still open - we are expecting a very sharp fall technically to pull the 30 day MA towards the 60 day MA. Having said that, the fundamentals behind this trade is not as clear cut as the fundamentals behind the Euro/AUD trade. As you know, we are bullish on the Australian economy (and any other commodity rich country). We also look to take a position in the New Zealand economy (agriculture makes a big part of their economy).