EUR/AUD trade idea
I’m thinking we might see some volatility in the EUR in early European trade and I favour playing this through the EUR/AUD cross. If the German constitutional court delays its decisions on the ESM, this will be short-term bearish for the EUR. On the other hand, the iron ore price rose by 7% overnight and this could be short-term positive for the AUD.
I’m looking to play this through the ‘legs’, selling EUR/USD rallies towards 1.2820 and buying AUD/USD dips towards 1.0275.