Those who have traded the 1.2925/1.4350 range over the last 13 months will have done very well for themselves and we are fast approaching the bottom end of this range yet again. Next technical support is a daily low from September at 1.3020 and below there should see a rapid fall to test the range lows.

The fundamental picture is heavily weighted against the EUR, in favour of the AUD, but that’s to be expected when we are trading at such low levels. Undoubtedly there will be momentum funds jumping on any confirmed bearish break, and thin December markets will exacerbate any moves.

I would suggest trying to buy near 1.2925 with a very tight stop-loss, just in case the range holds. If the range breaks, go with it and keep a tight trailing stop in case of false breaks.