eur aud analysis ~ forex trading tops and bottoms
Happy New Year everybody! Today I want to give you my short term analysis for eur/aud currency pair. From now on, occasionally, I want to take separate Forex pairs and do forecasts and analysis on them. Some of them might be long term, some short term trades, some maybe covering only a few days’ period and predictions for a day or maximum a week. If you have been reading my blog regularly you must have found that I like crosses and eur/aud, as well as gbp/aud have been covered in my posts (with lots of examples) quite a few times. Last year was very good for these pairs as they have been in very big swings (both up and down) that lasted for 2-4 months. It was pretty easy to trade the pairs for swingand trend traders and the securities simply change trend at the peak or bottom and trended in the other direction with minor retracements. How about this year? Let us think together!
Euro was very much pressured by these huge debts from mostly South European countries and a lot of economists, finance analysts, investors, speculators and average traders doubted whether the European Union will survive. So, we saw sharp moves in Euro crosses. However, as in the end of July the head of ECB announced that the Central Bank was planning to do anything it takes to save the Euro zone Euro bounced off significantly and strengthened against most currencies. The move continued till the end of the year and some believe it is going to continue this year too (at least against Japanese Yen and US dollar). This might be true. However, I do not think Euro will be that strong against commoditycurrencies. Why?
If you look at daily charts of various Euro pairs (and possibly Pound) you will see that at the end of the year Euro and Pound managed to make new highs against US dollar and Japanese Yen. However, it failed to do this with Australian dollar. Look at eur/aud and especially gbp/aud to see for yourself.
