It’s Why We Are Here
Over the last couple of weeks, I’ve gotten quite a lot of mail from people asking me about EURAUD. This currency pair, for you Newbies, is the Euro priced in Australian Dollars; so a quote of 1.42830 bid [sell] / 1.42860 ask [buy] gives you the sell/buy of how many Australian Dollars it takes to sell/buy 1 Euro.
This pair meets all of the important criteria I have set forth in the “-vegas Big Bang Algorithm” which is in the “-vegas For Life” file. Right now, I have my staff working on the Excel spreadsheet analysis that was done for EURJPY & GBPJPY.
Crunching Numbers @ $0.95 / Hour
I will release the analysis as soon as it is finished and then verified. I will then link it in the downloads section so you can download the entire Excel file if you wish.
Forex-Metal offers EURAUD for trade with a bid/offer spread of about 3 pips, which I consider to be very good to excellent. When you consider the spread on the EURUSD is about 1.5 – 2.0 and the spread on AUDUSD is about 2.5 – 3.0, you are getting the cross at about 1.5 pips on each side. At the retail level you will be hard-pressed to get a significantly lower spread.
Throughout my trading career, I have consciously remained vigilant NOT to be a “one-trick pony”. I’m not married to any currency pair or commodity. If it’s “hot” [above average volatility] I’m interested; if it slows down, it takes just a click of my mouse and I’m somewhere else.
What I [and you for that matter] need for success is constant above average volatility that we can capitalize on and profit. From a purely diversification standpoint, it also makes sense to include this pair to trade as it is removed from the Yen [USDJPY].
In any non Dollar cross, the important Dollar pair is the denominator. As long as the denominator moves, the cross will be volatile regardless of what the numerator does. A quick look at the daily charts shows that AUDUSD is just as volatile as USDJPY on most days.
So, as long as the spread is good, there’s no reason to ignore EURAUD.
Have a good day everyone.