Thread: EUR/AUD looks cheap?

Originally Posted by ;

nah,...I ...:... I would like to see that the 1.636 to maintain

You are assuming that the DOW will tank again. In case it goes to 14,000 we'll see 1.6/1.55

Additionally use stochastics and daily fibs with this pair... works like a charm!

i am not assuming anything about the dow,. .if I would seek out relevance to any pair it would function as usd/jpy for dow,. . .gbp/jpy for footse,. . .eu/jpy for eurex or cac or dax,. .

Fine...I slowly started to buy this pair 150pips sl,. . .call me crazy.

Thanks,. . .im long eur/aud 1.63824. . .and continue adding. .

Originally Posted by ;

thanks,.. .im extended eur/aud 1.63824. . .and keep on adding. .

Closed all,. . .now im longed 1.6362. . .still looking economical...

Originally Posted by ;

shut . . .now im longed 1.6362. . .still looking economical....

http://www.dailyfx.com/story/currenc...018863141.html
They tend to agree!

Just hope you have enough room to fluctuate. An alternative could be better in this case as opposed to an outright spot position.

I use this pair to hedge Gbp/Jpy.

Pete T

im out banked 100...i know, i know,. .now the tendency is established, but other crooses appearing cheaper. . .especially canadian since now news were briliant...

What is your point of view about EURAUD?

Problem with this pair (much like a number of other AUD crosses) is it may cut through resistance lines like a knife through butter when shareholders ditch the greater yielding AUD for the'safer' EUR. This can't be predicted. However, at this point I'd probably close out any short positions to protect profits. Daily Stochastic are showing the pair to be oversold. Here are the major resistance and service lines. Note the up station denoted by the lines.

Originally Posted by ;

i am not assuming anything about the dow,. .if I would seek out relevance to any pair it'd function as usd/jpy to get dow,. . .gbp/jpy to get footse,. . .eu/jpy to get eurex or cac or dax,. .

Fine...I slowly started to buy this pair 150pips sl,. . .call me crazy.

I really don't think that move is always that crazy, but you may want to re-examine the carry correlations. The DOW/SP500 correlates more to the EUR/AUD than it succeeds to the usd/jpy, since the EUR-AUD interest rate differential is significantly broader. The broader the differential, the closer the carry pairs tend to resemble the U.S. equity indicies.

Check out the following. Note how much tighter the correlation is, when the differential has been gt; 10 percent

EUR/AUD to DOW

http://finance.yahoo.com/charts?s=euraud=X#chart2:symbol=audeur=x;range=200 70305,20080508;compare=^dji;indior=volume;charttyp e=line;crosshair=on;ohlcvalues=0;logscale=on



TRY/JPY (among the greatest differentials) to DOW

http://finance.yahoo.com/charts?s=eu...urce=undefined



Most carry pairs are basically fairness indicies with different technicals, over the long-term. (oh... and don't forget curiosity )
Why trade the Try/Jpy? Come to think about it, there is no reason. It's basically SPY with liquidity problems!