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.
-vegas
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