Although the recent exchange rate of Euro against Aussie dollar softens the Greece fear. The trader euphoria is fairly stimulating towards prominent news and we observe this pair is highly news driven as Australian international trade volumes were set up majorly based on a theme of Australia and the EU have a convergence of views on many global economic issues and work together in the G20 context to meet the current challenges facing the international economy, including the sovereign debt crisis in the euro area, and to promote global economic recovery and growth. But this debt crisis itself started taking a phenomenal divergence on Euro currency structure and making it fragile.Australia’s played key role in partnering with EU over last 20-2 years and maintained the consistent trade volumes and on the other hand few years back EU’s Foreign direct investment in Australia totaled $146.6 billion – approximately 34% of total FDI. It is now expected to be taken back due to the strengthening purpose in EU, as a result a remarkable rise in Euro against AUD is projected.For those traders who want to benefit out of medium term swings, can start buying far month at the money call options for speculating purpose as these contracts comes with reasonably cheaper than in the money and will sufficient time decay. The Euro to Australian Dollar (EUR/AUD) exchange rate rose to levels of 1.3937 now, on fast stochastic cross over happened exactly at 25 region with RSI at around 45 levels which is fairly in convergence with price curve.
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