This is a follow up on the previous analysis posted a month ago. I've been bearish on EURAUD for a while. And RBA rate cuts or no, Euro is more fundamentally weaker than the Aussie and technically too, the signs are far too many to miss.
This is a long term trade idea. The ones you can set and forget without being getting involved too close. Longer term target is 1.295 with an optimistic lower dip to 1.16 as well.
Taking short positions in EURAUD is also rewarding in the overnight swaps. And as long as RBA stays above the 1% interest rate, we should expect to see +ve rollover swaps. Considering this is the weekly trade, expect to keep this trade open for at least a few quarters at the minimum. The collected swaps will amount to quite some money.
This is a long term trade idea. The ones you can set and forget without being getting involved too close. Longer term target is 1.295 with an optimistic lower dip to 1.16 as well.
Taking short positions in EURAUD is also rewarding in the overnight swaps. And as long as RBA stays above the 1% interest rate, we should expect to see +ve rollover swaps. Considering this is the weekly trade, expect to keep this trade open for at least a few quarters at the minimum. The collected swaps will amount to quite some money.
