EUR shorts were all at time record levels late last week according to IMM data and AUD longs were also at significant levels. Once the market tries to undo this imbalance it can take a long time. There will of course be pullbacks but those trying to pick interim tops in EUR/AUD will need to exercise extreme caution. We can expect further whippy trading conditions but selling AUD rallies still looks like the sensible strategy whilst this unwind is taking place.