Playing some rotation from USD to EUR via the cross
I was already looking at the AUDUSD to be short ahead of the 0.7880/00 resistance as mentioned before and trying to find a EURUSD bottom. Well the Chinese comments took me over the edge to
go into EURAUD long. I waited for the rebound to start to have some shape through 1.5287. The rationale is that , even if China doesn’t unwind a load of USD bonds right ow and shoot themselves in the foot, there will some reflection about a possible rotation deriving from even a minor switch. That rotation would logically go for the main part into EURO, the second most important Foreign currency in the books.
I will abandon ship either on a move back through 1.5235 low of today or add through a 1.5345, first fib level, break for a look into the next