Many have been trying shorting Euro with EUR/USD and getting chopped in the range. Best pair to short Euro in our opinion is EUR/AUD. We have been short this pair from 1.5100 and after 500 pips gain, we still believe that there are more 400 / 500 pips to go. Reasons we picked this pair are,
1. If US dollar becomes weak, then of course both EUR/USD and AUD/USD will rise. So net effect on EUR/AUD will be minimal. Besides AUD is little more advantage in terms of interest rate advantage. ECB is talking about more stimulus while RBA is on hold.
2. If USD roars back knocking everything down, then also we believe AUD/USD is more supported than Euro.
3. In terms of nearby resistance levels, It might be tough for Euro to break 1.1500 while for Australian Dollar 0.8000 is still 300 pips away.
1. If US dollar becomes weak, then of course both EUR/USD and AUD/USD will rise. So net effect on EUR/AUD will be minimal. Besides AUD is little more advantage in terms of interest rate advantage. ECB is talking about more stimulus while RBA is on hold.
2. If USD roars back knocking everything down, then also we believe AUD/USD is more supported than Euro.
3. In terms of nearby resistance levels, It might be tough for Euro to break 1.1500 while for Australian Dollar 0.8000 is still 300 pips away.
