EUR/AUD: Testing highs from October 2011

The power of reversal formations is very evident in the AUD and NZD crosses as these reversals were foretold in EUR/AUD and in GBP/NZD by very clear indicators. Its too late to start chasing it now, but I’ve found over the last 13 years trading my personal account, that I make all of my money by waiting for these big reversals. Unfortunately I didn’t catch the whole up-move in EUR/AUD but I shouldn’t be greedy.

The AUD/USD is going through another weak leg at the moment and has broken through the .9500 barrier with ease, next target .9390. Cable might drift a bit in sympathy with the AUD/USD but remember that this is a cross move so dips are for buying in the cable.


  1. Good morning Sean, Big thanks for all your updates. I shorted EUR/CAD at 1.3550 in hope of about 500 pips fall. I think it looks too tired above my shorting level. I will appreciate if you have any suggestion please. Also, do you think it make some sense to short EUR/AUD at this stage or should we be more patient ? Regards, Pete.

  2. Personally I wud not short euraud, too strong of an uptrend Pete. Someone else asked yesterday re EURCAD but I wud rather not guess or make something up; I really have no strong feel as I haven’t followed it closely

  3. Well Pete, I’ll be blunt, I think you have the wrong position. Sure the 4-hr chart looks overbought but the longer term charts look v bullish to me. Looks like its headed for 142+

  4. Aussie wants that 0.94 now. 1.39 and more for eur/aud. that would be a capitulation point. I don’t think every tom dick and harry is shorting the aussie at the moment. when they do the aussie will rise. many people i know are playing counter trend rally on this one and getting burned

  5. where do you see euraud this rally is capable driving it to? any chance of contrarian play there in coming days? also would appreciate if can hear your thoughts on AudChf. came almost 1000 pips off recent highs

  6. Hi RR, trend is very strong so would not get in the way, we could see a 137/140 consolidation or something like that; I don’t think that it will retrace very deeply

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