EUR AUD: Live Euro-Australian Dollar Rate, Chart and Forecast
The EUR AUD isn’t one of the most traded currency pairs in Forex. However, that doesn’t mean it isn’t an exciting asset. As we’ll see in this article, this pair has benefits that many traders take advantage of every day. This EURAUD analysis will also look at EUR to AUD history and valuable tips to buy and sell. Finally, we’ll see how to start trading EURAUD easily and safely.
What is EUR AUD? Overview
The EUR AUD is what is known as a cross-currency pair. This means it doesn’t contain the U.S. dollar. Precisely, the EUR AUD measures the Euro against the Australian Dollar. The evolution of the EUR AUD depends on the growth of the European and Australian economies.
EUR AUD is especially popular with experienced traders, who want to diversify their portfolio. It’s also a pair with higher than average volatility, which implies a higher potential for gains.
However, it is no more challenging to trade EUR/AUD than other currency pairs. This means that the EUR AUD is still accessible to beginners in trading as well. Like all currency pairs, the EURAUD is more suitable for short-term trading than a long-term investment.
Below you will find a live chart of the EUR/AUD price trend.
How to Read the EURAUD Chart
While all U.S. stocks are priced in dollars and all European stocks are priced in euros, currency pairs differ. In the currency market, the price of one currency is always expressed in another currency. In the case of the EUR AUD pair, this is the price of 1 EUR in AUD.
The EURAUD chart, therefore, expresses the evolution of the Euro against the Australian Dollar. It also serves the purpose of Euro to AUD conversion. The first currency in the pair, in this case, the Euro, is called the base currency. The second currency, the Australian Dollar in the case of EUR AUD, is called the quote currency.
Also, there are different types of EUR/AUD charts. The most popular charts for EUR to AUD trading are Japanese candlestick charts. It is also possible to display EUR AUD charts of different time units, depending on whether you want to trade for the short or long term. Finally, note that some trading platforms allow you to look at the AUDEUR chart to check the price of AUD to EUR, but AUD EUR exchange rate is not a tradable currency pair.
EUR AUD Historical Data
Let’s look into the history of EUR AUD and the evolution of its exchange rate. We will analyze its historical evolution before focusing on the shorter-term charting context of the EURAUD.
EUR AUD Exchange Rate History
We can break down the evolution of the EUR AUD since the inception of the single European currency into three distinct phases.
The first phase, which began with the creation of the Euro and lasted until May 2008, saw a horizontal trend for the EUR AUD. During this period, it moved around a pivot point at about 1.7500. Within this sideways trend, it made a low of 1.42 and a high of 2.05, indicating its high volatility.
From May 2008 until the end of that year, the EURAUD exchange rate exploded upwards to an all-time high of 2.1000. Following this record high, which has never been seen again, EUR AUD displayed a powerful downtrend that brought it to a low of 1.16 in August 2012.
Since then, the EUR AUD has been showing an upward trend, especially on the weekly chart. In fact, a recent correction brought the EUR AUD back into an uptrend line visible since 2012.
EURAUD Exchange Rate Today
The EURAUD chart shows that it has been in an uptrend since July 2012. As part of this uptrend, EUR AUD reached a high of 1.98 in March 2020.
However, EURAUD has since shown a correction. This correction has brought the EUR to Aus into contact with an uptrend line visible for about 10 years. Therefore, there is good reason to believe that the correction in EUR/AUD is over and that a medium-term uptrend phase will soon begin. A break below the key 1.50 level would negate this scenario.
Remember that Forex allows you to bet on the upside as well as the downside on all currency pairs, including EUR AUD. This means that it is possible to make money on the EUR to Australian Dollar whether the trend is up or down.
Traders should also note that the medium to long-term trend is of secondary importance to EUR AUD traders, who are primarily interested in the very short-term movements of the currency pair.
What Influences EUR AUD Exchange Rate?
Below, we will detail the most influential factors on the EURAUD exchange rate.
Central Bank Policy
The monetary policy of central banks, the ECB and the RBA in the case of EUR AUD, is the most critical factor in the evolution of the currency pair. High rates are a bullish factor for the currency. EUR AUD traders are therefore interested in the rate difference between the Euro and the Australian Dollar.
A higher ECB rate than an RBA rate will be a bullish factor for the EURAUD and vice versa. EUR AUD traders mainly follow the monthly monetary policy committee meetings and central bank meeting minutes to learn about central bank monetary policy.
Australian and European Economic Indicators
The economic calendar, which allows you to view the most important European and Australian economic statistics in real-time, is an indispensable tool for any EUR/AUD trader. Indeed, strong Australian statistics will tend to strengthen the Australian Dollar and push EURAUD lower. Conversely, strong European statistics will support the Euro and cause EUR AUD to rise.
EURAUD correlation with Gold Price
As Australia is one of the world’s largest gold-producing countries, the price of gold can have a decisive influence on the exchange rate of its currency, as the world must pay Australian gold miners in Australian dollars. In other words, a rise in gold is a bullish factor for the Australian Dollar and therefore a bearish factor for the EUR/AUD. Similarly, a decline in gold will weigh on the Australian Dollar and thus favour the rise of the EUR AUD.
EUR AUD Forecast and Predictions
Let’s now study of forecasts for the EURAUD. However, it is essential to note that medium to long-term forecasts in Forex is often unreliable. This is because the evolution of currency pairs depends on major economic trends, politics, and even geopolitics, which are highly unpredictable factors. This is why trading the EUR/AUD is mostly about short-term investments.
|Forecast Site||EUR AUD Forecast 2022|
Note that the wide range of forecasts reflects the unpredictability of the EUR AUD in the medium term.
Why Trade EUR AUD Today?
- Volatility: The EUR AUD is one of the most volatile currency pairs in Forex. This means that it is one of the currency pairs that have the most significant profit potential. However, the volatility is double-edged and also increases the potential for loss.
- Brokers, including ZFX, allow you to trade the EUR AUD pair with high leverage. Leverage allows you to expect massive gains on very small changes in the EURAUD exchange rate. However, as with volatility, it is essential to remember that leverage works both ways, increasing the losses as well.
- Relatively Few Indicators to Watch: While dollar-related pairs are subject to the influence of numerous U.S. economic indicators daily, there are relatively fewer statistics that could potentially influence the EUR AUD in the economic calendar. This means that EUR/AUD traders have fewer events to monitor. This makes it easier to track the EUR to Australian Dollar.
- Diversification of trading instruments: Finally, traders should note that the EUR AUD is also a way to diversify for investors who want to bet on the Euro or the Australian Dollar. For example, investors interested in the Euro will be able to trade both EUR USD and EURAUD. Investors interested in the Australian Dollar can trade AUD USD and EURAUD.
Where Can I Invest in the EUR AUD Pair?
You can trade EUR to AUD easily by using the highly regulated and efficient ZFX broker.
ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many technical analysis and automated trading advantages. Also, as you can see by yourself with a demo account, the spread for EUR AUD is usually lower than 1 pip. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How to Trade EUR AUD Now
Trading EUR/AUD through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes.
1 – Register with ZFX
First, go to the ZFX broker’s website, and click on “open an account”. Then, fill in the registration form as shown below with your personal details, including your phone number which will be verified by SMS.
After filling out the form, click on the “next” button at the bottom of the page. Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform.
2 – Make your first deposit
To do this, click on “make a deposit” on the screen that is displayed immediately after registration. You will then be asked to choose a payment method. Let’s take Mastercard as an example:
Here, indicate the deposit amount and then click on “Confirm Deposit”. You will then be asked for your credit card information before the final validation of the payment.
3 – Account verification
Finally, it will also be necessary to proceed with the account verification by sending supporting documents.
As shown in the image above, you will need to upload the documents directly to the ZFX website.
4 – Trade EURAUD
Once your documents are validated, you will then be ready to trade EURAUD using the ZFX MT4 platform.
Tips for EUR AUD Beginner Traders
As this guide comes to an end, all that’s left is to provide you with some valuable tips that should get you started trading EURAUD in the best possible conditions.
Learn Technical Analysis
Technical analysis is an essential skill for any EUR to Australian Dollar trader. It allows you to make complete trading decisions based solely on the study of charts. Technical analysis will enable you to study the trend of the EUR/AUD pair and accurately determine entry and exit points for buying and selling. Fortunately, technical EURAUD analysis is easy to learn and relies heavily on visual analysis. Indeed, no mathematical or financial skills are required.
Find a good source of EURAUD news
EUR AUD traders also need to stay well informed. This includes finding an economic calendar that will inform you in real-time when the most important European and Australian economic statistics are released. It can also be helpful to find a source of information on European monetary policy or Australian economic policy. Finally, it can be rewarding to consult other traders’ EURAUD analysis to enrich your own opinion with different points of view.
Building and testing a trading strategy
Once you’ve learned the basics of technical analysis, you’ll need to put those lessons into a coherent trading methodology. This includes defining the position entry and exit parameters you will follow, as well as your risk management ratios. Next, you will need to test your trading strategy on a demo account with virtual capital. This will allow you to test your EURAUD trading strategy without any risk of loss.
Choose a reliable EUR AUD broker
Last but not least, it is crucial to choose a regulated broker, such as ZFX, to ensure the safety of your funds and the honesty of the broker. You will also need to check that your broker offers a powerful trading platform that provides you with all the necessary features.
Bottom Line: Is EUR/AUD a Good Investment Now?
The EUR/AUD is a currency pair that has many advantages and strengths over other assets. The high volatility of the pair allows for significant gains in EUR AUD trading in the short term. The EURAUD correlation to gold is also very high, making it a good proxy for betting on precious metals.
If you want to start investing in EURAUD like many other traders, you need to open an account with a forex broker. In this regard, we would like to remind you that ZFX, which we presented in detail in this guide, is the best for EUR to Australian Dollar trading. We particularly like the MT4 platform provided by this broker and its reasonable EUR AUD spread.