EUR crosses: I still prefer the buy-dip strategy
- EUR/JPY obviously led the way and I feel some of the other crosses have catching up to do.
- EUR/AUD has formed a nice technical base and remember that we are trading close to historical lows. With EUR sentiment bouncing off catastrophically low levels, and with AUD sentiment waning amid falling commodity prices and worsening Chinese data, this remains the stand-out trade for me. I’m long, looking to add on dips for moves to 1.32+.
- EUR/CHF is also not far away from historic lows and the SNB is putting a base in! Why fight them? The market is very long of the safe-haven Swiss asset trade, and if even 50% of this is unwound EUR/CHF will be back above 1.30 very quickly.
- EUR/GBP is less clear-cut and best left along imho.