Jue 12th (+109 pips)

Trade 3 Long AUDUSD (-5 pips)

The daily and weekly charts for the Aussie remain bullish, a long consolidation pattern that we have traded many times appears to becoming to an end.  I are forecasting lower still for the dollar index when the current short term bounce concludes. The chart shows the proposed path of the Aussie as it moves higher.

Last week the Australian economy recorded some good results with better than expected GDP figures showing a 0.3% increase.  China released better than expected export and import figures adding more positive impetus.

The hourly chart is not quite perfect, the break of the purple trendline was very bullish (and was the trigger for the trade) but the pullback was not as long as expected.  I had forecast a minimum pullback of 0.7513 and hence have given this trade a larger than normal stop loss in case the trendline break is a fakeout and the pullback continues lower.  Position size has been adjusted downward to allow for this

Trade 2 Short GBPAUD (+58pips)

This trade is very similar to trade 1 but takes advantage of the fat that the Aussie is approaching a break higher against the dollar and had a very good economic week.

Trade 1 Short GBPUSD (+56 pips)

The political risk to the pound just keeps getting worse i wrote about it on the economic blog.  Whenever a good technical position arrives it is a good idea to sell the pound.  It is however very volatile and can snap back easily so i will take proft at the first sign of trouble.