Long EUR/AUD has been an absolute freight train since April (a freight train filled with money).
It was easily the best performer in the second quarter and is ramping up again after a two month break. This week, it gained in 4 of the 5 sessions with only a miniscule loss on Thursday. The total gain was 3.75%, or a whopping 561 pips.
Up close, the trade looks like a runaway rally that’s gone too far, too soon.
But zoom out and it looks like it could still run a long ways. EUR/AUD was a heavily-invested carry trade and with the ECB edging toward the sidelines this week and the RBA poised to cut rates next week, it could be time for an extended run.
Ryan looked at the EUR/AUD technicals on Wednesday and Citi why you don’t bet against a trend with this call.