Monday, 9 January 2012

Some Thoughts on the Aussie..

The bid side on AUD seems exceptionally strong at the moment. The chart below sees our raging bull against the pitiful, depressing EUR.

No contest.


Given we've had a slight retracement from the highs, a long position here is very attractive, especially since we expect this trend to continue on the back of commodity correlation and possible further EUR weakening.
But given our fairly esoteric disposition, a simple Buy here seems to easy and 'naked'. Indeed, there is no such thing as a free lunch and supposed no-brainers often end up as the most costly and psychologically damaging of trades.
We prefer to play the AUDUSD, with a bullish bias and paying regard to the very important level of 1.0200. Just look how the currency has treated this level in the past few months. It really is so blatant it seems almost unfair to trade off it.


It has been a mainstay play of our FX Intraday Programme so far this year.
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1 comment:

  1. Anonymous9 January 2012 at 17:07

    enjoying the conflict & analysis of the problem "so obvious it might be a trap"...!!

    ReplyDelete

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