Remember a few weeks back when “they who do God’s work” recommended we sell EUR/AUD when it was around 1.3700? Some of you heretical cynics even had the audacity to suggest that they were already short and were hoping for the mug-punters to come into the market and sell it down so as ‘they’ could reap their well-earned profit. Bit like a Tithe I suppose.
Whatever, they certainly did manage to pick the bottom, although not how they envisaged, so I guess thats one up for the cynics. EUR/AUD has recovered back above 1.4000 and I’m hoping that a major recovery might be getting started so I’m dipping my toes slowly into the water and I am starting to build a long position again.
As I’ve just mentioned, the EUR story is that it’s going up despite bad news and is forcing shorts to cover. The AUD story in my view is that it’s seriously over-valued, the market is long, and the AUD is susceptible to sharp sell-offs at any time especially if the market starts getting more worried about Chinese sanctions.
From a technical perspective, I’ll start getting a bit worried if it clearly breaks below 1.3900 again.
