There seems to be no real respite for this pair and although oversold, the EUR/AUD managed to flush out the 1.2000 barrier yesterday. Bounces have since been restricted to the 1.2030/40 level and unless we get a countermove back up through 1.2100 (Monday’s high around 1.2097), there’s every chance , with a weaker EUR/USD to see this move extend lower again towards 1.1960.
Model funds have apparently been hoovering up dips in AUD/USD maintaining the firm undertone, and although offers are currently lying up at 1.0210/20 from Sovereigns and possible RBA commercial interest, there are buy stops placed on a break of 1.0230
AUD’s sitting around 1.0206 with EUR/AUD around 1.2012
