Manxx’s post made me realize that I forgot to mention looking at trading relative strength.
For example, if you read Pip Surfer’s recent AUD Weekly Review, you can see how AUD performed against different currencies.
You could’ve went short EUR/AUD and short AUD/CAD.
(I ignored AUD/CHF because CHF is highly manipulated by the SNB.)
Synthetically, you’re short EUR/CAD, but if you want to play multiple AUD pairs, you can explore this approach.
Since we know how AUD did last week, here’s another idea (without looking at charts).
Now that we know that EUR/AUD ended up and AUD/CAD ended down, do you think that each pair will end up or down at the end of next week?
If you believe in momentum, and that price will continue in the same direction, you can put on the same trades: short EUR/AUD and short AUD/CAD.
If you believe in mean reversion, and that the moves for each pair are now overextended and will reverse direction, then you can put on the opposite trades: long EUR/AUD and long AUD/CAD.
I’m just giving a simple example to hopefully jumpstart your thinking. You may want to actually look at charts to get a sense of the price action. Maybe there are other AUD pairs that are better candidates. Or even non-AUD pairs.