Of all the currency pairs I track and trade – there is no more a beast than EUR/AUD ( The Euro vs The Australian Dollar).
This currency pair as well as it’s sister pair EUR/NZD makes some of the largest intraday moves of the entire currency world “if not” theeee largest moves, and hav the ability to devastate an account – literally within minutes.
Trading this pair takes acute knowledge of “fundamental under currents” in currency markets, as the pair functions as the “ultimate risk off / on trade”. Get it right, and you can see crazy profits practically overnight…get it wrong and watch your account go to zero. It’s truly a beast and commands the utmost respect. I would argue that this pair is the most volatile / high risk / strange / powerful / beautiful monster in the entire currency world. I love it. I fear it. I trade it.
NEVER TRADE THIS PAIR WITH A FULL POSITION AS THE DAILY VOLATILITY WILL WIPE YOU OUT IN A HEARTBEAT.
I am talking about several hundred pip moves ( up and down ) within a single days trading, and as much as “thousand point moves” weekly. Two hundred pip intraday action is totally normal, so for any of you “newbies” hoping to catch a quick buck – you can forget it. The stops needed to trade the pair are larger than your account balance.
Imagine EUR/AUD like a big red button you’ve been presented with, and asked if “you should push it or not” -the temptation is there, but equally the risk.
I am currently long both EUR /AUD as well EUR/NZD and suggesting that risk is – OFF.