Why trade AUD/EUR is because AUD/USD is traded twice daily or 24/7 in Asia as well as Europe and America for the past 2 years. AUD/USD is the prominent pair in the mix but AUD/USD is covered by links to AUD/EUR and EUR/AUD. To understand AUD/USD is to know AUD/EUR and EUR/AUD. A triple trade is born, we’ll call triplets and represented as a musical term. Many triplet trades exist. As another example, GBP/USD, USD/CAD and GBP/CAD.
Australia’s most vital pair historically is AUD/GBP because Australia was pegged to AUD/GBP from the 1800’s to the 1960’s when the RBA was formed and broke free from Australia’s Treasury Department. Australia maintained the AUD/GBP peg when AUD/USD free floated in 1983. Why the 1800’s AUD/GBP peg is because Australia gained finance access and sustained itself through London Money Markets until Australia became a formal nation in 1901. When AUD/USD free floated in 1983, a new triplet trade was constituted as AUD/USD, GBP/USD and AUD/GBP or AUD/USD, AUD/GBP and GBP/AUD. Many ways to view and trade triplets.
AUD/EUR most vital break points for the week dating to 1999. Current AUD/EUR is massively oversold and translates to a rise and drop to EUR/AUD.
AUD/EUR. 0.6427, 0.6444, 0.6452, 0.6488, 0.6511, 0.6526, 0.6533, 0.6593, 0.6605, 0.6641, 0.6690, Rough at 0.6700’s to begin at 0.6736, 0.6746, 0.6764, 0.6770, 0.6804, 0.6809, 0.6896, 0.6917, 0.7072, 0.7083 and 0.7123.
Most vital breaks 0.6511 and 0.6526. The 14 year average 0.6605. Mid point from 0.6605 is 0.6516. Mid point from 0.7123 is 0.6705. Range 0.6427 to 0.6526.
EUR/AUD. 0.6427 to 0.6526 means 1.5559 to 1.5323. AUD/EUR 0.6605 means EUR/AUD 1.5140. Mid point from 0.6516 means 1.5346 EUR/AUD.