FX.co ★ EUR/AUD The cross rate is near 20 year lows. November 12, 2010 (Weekly Strategy)

We enter long positions on the Eur/Aud at 1.3725, with an open objective and stop in place by 1.3575. The cross rate is near 20 year lows and the bottom of a major range. Monthly studies are severely oversold (very rare) with the RSI by 35 and in desperate need of a healthy rebound. We can assume that this latest unemployment data gives us a good excuse to enter the position, and we believe that the cross could start a significant rally from here.