EUR/AUD — Time To Be A Seller On Rallies

As I was scanning through my markets today, I feel compelled to report on what’s potentially a short-term opportunity to capitalize on the strength on the Aussie, this time vs the Euro. As the Fed Put is out of Powell’s hat, coupled with China’s easier policies, this has induced a short-term change in market dynamics, which is being supported by EUR/AUD technicals too. The price has broken below its previous swing low, with the VIX and the German vs Aus yield spreads moving in tandem to favor the downside momentum in the pair. However, with the move looking overstretched, the best play here appears to be engaging in relief rallies above the 1.61/6150 area.