ANZ -"· There are at least five reasons why EUR/AUD will rally: the realisation that Cyprus was in fact special; an asymmetry in the reaction of EUR and AUD to global growth; the risk of a policy response if AUD appreciates but not EUR; new dynamics in China; and, the coalescing of these factors at extended levels.

· The key risk to a long EUR/AUD position is the continued leakage of foreign exchange reserves out of Europe and into the new “emerging” reserve currencies, of which the…

Westpac - "The return of genuine political concerns in the Eurozone should continue to chip away at EUR/USD multi-week while AUD/USD trades broad ranges, leaving EUR/AUD biased to further decline near term. EUR/AUD 1.2350 is the next target but Nov’s 1.22 lows are probably just out of reach so long as Australia’s domestic outlook is soft enough to keep the RBA warning of further monetary easing. The ECB’s bond market backstop plan also argues against substantial further EUR/AUD…

Hi Traders,

My suggestions for today.

Overall there is strength in the EUR, CAD and some minor strength in the NZD.



Overall there is weakness in the USD, JPY and some minor weakness in the AUD.







Buy Trades - EUR/USD, EUR/JPY, EUR/AUD, EUR/CHF, CAD/JPY



Sell Trades -…

Westpac - "EUR/AUD is showing tentative signs of pullback after a steep rise. Near term the pair should consolidate around 1.2930/1.3050. Given evidence that Japanese investors are rebuilding EUR holdings partly at the expense of AUD, risks for EUR/AUD are to the upside over the next 2-3 months, perhaps as far as 1.33. This will depend on the Eurozone maintaining its improved financial conditions – hardly a certainty given the rolling political crises of the…

Here Is my EUR/AUD H1 chart. Upcoming major resistance @ 1.2730 zone.

looking to place a sell limit order for a quick bounce down to…

Westpac - "Our base case for a decline in both AUD/USD and EUR/USD into year end implies most EUR/AUD trade is contained within a muted 1.22-1.25 range. In early 2013 however, the prospects are increasingly negative for EUR/AUD as the end of the RBA easing cycle looms while the Eurozone recession drags on and Greece and Spain continue to weigh. This should see EUR/AUD back to 1.19 or lower."

Westpac - "EUR/AUD risks remain to the upside multi-week, targeting 1.30. A bailout / backstop for Spain and approval of Greece’s quarterly loan tranche seem likely in Nov, supporting EUR sentiment. AUD in contrast should struggle as the RBA cuts the cash rate again and stands ready to ease further, while it seems too early to call a bottom in the Chinese growth cycle."

ANZ - We recommend four views into the coming event risk: (1) Short SGD/MYR, (2) Long USD/IDR, (3) Long EUR/AUD, and (4) Short AUD/NZD. The world feels like it is entering a GFZ; a growth free zone. Fortress Asia has found that Europe has stolen its export crutch, and China is adjusting to slower investment growth. The event risk calendar, obviously, is packed.