Aussie Long initiated

Following on from my comments on Gold in the previous post; we can also find a similar set-up in the AUS/USD pair.  As a commodity currency, the fate of the Aussie is often correlated with Gold so it is unsurprising that a similar set-up has materialized in both markets simultaneously.  That being said, they are not the same market and a position in both is somewhat diversified.  However, your position risk should obviously be carefully managed if going long both the Aussie and Gold as they are highly correlated when it comes down to global Macro economy especially China during the overnight session (GMT).

Gold Long set-up

As illustrated below it is apparent that we were correct to take profits when we did in Gold (post 27 March) as momentum did indeed slow and we have since seen a persistent pull-back.

On the 4hr chart below: a decent long set-up has presented itself again with another clear false break of previous support (forming the bottom of the bearish mother candle) this also coincides with the 61.8 Fib level which, if respected, can form the beginning of a powerful 3rd wave of momentum.

I am therefore looking to get long on a close above this level with a tight stop below the low of this latest Hammer candle.

  

Gold closed-out

I have closed out my gold position for a nice profit as momentum has slowed to the up-side here.

Gold false-break and double bottom.

In Gold we've seen a clear false-break of previous major support forming a hammer set-up on the 4hr chart as below. 

On the daily time-frame we can see the significance of this support level as it forms the low of the mother candle established on Tuesday last week.  A close above this level will provide further confirmation.

EURGBP double bottom

We've got a double bottom in the EUR/GBP cross pair which has put me long as shown on the 4hr chart below.  This is not a Macro-Risk trade and can be a useful addition to holding a net long or short risk trade in the major currency pairs such as the Dollar/Yen which has delivered a bearish outside candle on the 4hr chart below.  Accordingly I have a sell order in place as shown.

 

GBP/USD sell order

Following the FOMC decision and statement; we've got a nice set-up in Cable which I hope to exploit with the following sell order.

Aussie Trade follow-up

Apologies for the quality of this image.  My short position has only been partially displayed for some reason as text on the left hand-side of the pic.  Following on from my sell recommendation last week I am looking to take profit around these current levels for a respectable 1:2 risk reward.  If we can break yesterday's lows around 1.04850 I may look to get back in on the short side, but for now I think we've reached support and will be happy to take profits

As a side-note: the EUR/USD pair is approaching key levels in the form of previous support and the 50% Fib from the recent new low and bounce on the Daily.  I will be watching the price-action for any opportunities to get long here...