It's the end of a nice long holiday weekend, and it's time to start thinking about trading again.  I'm still sitting on a few positions held over from last week, all of which are currently in profit.  I'm short EUR/USD and AUD/USD, and long EUR/AUD.  All of these pairs have retraced a bit in recent days, so we'll see if they resume their trend and I keep riding them, or if they continue to retrace and I get out.

Tonight, I'm eyeing a short setup in GBP/JPY.  The pair has been in a bit of a downtrend in recent months with an area of support around 139.00, and for the past few days it's been hugging a down trendline that has been serving as an area of resistance.  It also happens to be just under a horizontal S/R zone that has been in place since mid-2009.  I think we've got some room to move down between its current price of 146.00 and the aforementioned area of support around 139.00.

I'm going to play this one with a tight initial stoploss - the pair has been consolidating in recent days and a logical place for the initial stoploss would be just above the down trendline.  If we break out to the upside of the falling trendline, I want to get out fast.  So, we'll test the waters with a small position and see where it takes us.  As always, I may be wrong!

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It's the end of a nice long holiday weekend, and it's time to start thinking about trading again.  I'm still sitting on a few positions held over from last week, all of which are currently in profit.  I'm short EUR/USD and AUD/USD, and long EUR/AUD.  All of these pairs have retraced a bit in recent days, so we'll see if they resume their trend and I keep riding them, or if they continue to retrace and I get out.

Tonight, I'm eyeing a short setup in GBP/JPY.  The pair has been in a bit of a downtrend in recent months with an area of support around 139.00, and for the past few days it's been hugging a down trendline that has been serving as an area of resistance.  It also happens to be just under a horizontal S/R zone that has been in place since mid-2009.  I think we've got some room to move down between its current price of 146.00 and the aforementioned area of support around 139.00.

I'm going to play this one with a tight initial stoploss - the pair has been consolidating in recent days and a logical place for the initial stoploss would be just above the down trendline.  If we break out to the upside of the falling trendline, I want to get out fast.  So, we'll test the waters with a small position and see where it takes us.  As always, I may be wrong!

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This Friday is Christmas, so I suspect that the week in the Forex market will be relatively quiet.  I've got a few open positions that I held over the weekend that I'll be monitoring, but I don't anticipate entering into any new positions (that is, of course, unless I see an opportunity I can't pass up!).

I've currently got an AUD/USD short position that has an unrealized profit of about 100 pips so far.  I entered into this position following the breakdown out of the symmetrical triangle that I mentioned last week.

I'm also short EUR/USD, with an unrealized profit of about 340 pips so far.  This trade has really worked out well for me ever since I got in shortly after the break of the rising trendline.  I took a small portion of this trade off (about 20%) last week just so I could bank some profit, and I've moved my stoploss to breakeven.  I'll be looking to bank more profit if the pair shows any strength this week.

EUR/USD Daily Chart

The third position that I've currently got open is a long EUR/AUD position.  It hasn't taken off quite like the others, and I'm sitting at a 50 pip unrealized loss.  The pair is still above the strong support around 1.6000, so my reason for entering and continuing to be in the trade is still there.  We'll see what this pair does this week.

So, that's what I'm looking at for the upcoming week.  Good trading to all!

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Just wanted to quickly note a few more potential setups this week before calling it a night…

AUD/USD

After a prolonged uptrend, AUD/USD has been consolidating as of late on the daily chart, forming a nice symmetrical triangle. Today, the pair broke down through the bottom line of the triangle, offering us a potential short opportunity.  Time will tell us whether this is actually the beginning of a significant move down.

EUR/GBP

Today's action saw the EUR/GBP test a rising trendline serving as support.  This could be a good opportunity, depending on how the next few days unfold.  If the pair respects the trendline, it could be a good long opportunity, especially considering that the general trend since the beginning of August has been up.  On the other hand, if the pair breaks down through the trendline, it might be a good short opportunity (after all, we did have a lower high to start off the month of December).  For now, I'm sitting on the sidelines waiting for this pair to show its hand.

EUR/AUD

EUR/AUD may be forming a bottom after being in a downtrend for months.  The pair appears to be forming the right shoulder of a potential inverse head and shoulders pattern.  Today we saw a strong move up from the most recent bottom, and I'm expecting a move up, at least in the near term.  As always, I could be wrong though.

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Just wanted to quickly note a few more potential setups this week before calling it a night…

AUD/USD

After a prolonged uptrend, AUD/USD has been consolidating as of late on the daily chart, forming a nice symmetrical triangle. Today, the pair broke down through the bottom line of the triangle, offering us a potential short opportunity.  Time will tell us whether this is actually the beginning of a significant move down.

EUR/GBP

Today's action saw the EUR/GBP test a rising trendline serving as support.  This could be a good opportunity, depending on how the next few days unfold.  If the pair respects the trendline, it could be a good long opportunity, especially considering that the general trend since the beginning of August has been up.  On the other hand, if the pair breaks down through the trendline, it might be a good short opportunity (after all, we did have a lower high to start off the month of December).  For now, I'm sitting on the sidelines waiting for this pair to show its hand.

EUR/AUD

EUR/AUD may be forming a bottom after being in a downtrend for months.  The pair appears to be forming the right shoulder of a potential inverse head and shoulders pattern.  Today we saw a strong move up from the most recent bottom, and I'm expecting a move up, at least in the near term.  As always, I could be wrong though.

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The EUR/USD setup I was watching has turned into a short position for me.  The pair broke the rising trendline last week, then retraced slightly to the trendline, before continuing with its move down on Friday.  I jumped in to my short position on Friday as the Euro resumed its move down.  Though we saw an up day today, I'm still bearish this pair for the immediate future.  We'll see what happens…

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AUD/JPY is presenting a possible short opportunity on the daily chart.  After being in a bit of a range for several months, the pair hit a new high in mid-October, but has made a couple of lower highs and lower lows since then.  We appear to have made the second lower high yesterday, so this may be a good time to jump into a short position.  We've a got a little room to work with before the pair hits horizontal support around 76.00 (although we should proceed with caution as the pair aproaches 80.00, another area of support).

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AUD/JPY is presenting a possible short opportunity on the daily chart.  After being in a bit of a range for several months, the pair hit a new high in mid-October, but has made a couple of lower highs and lower lows since then.  We appear to have made the second lower high yesterday, so this may be a good time to jump into a short position.  We've a got a little room to work with before the pair hits horizontal support around 76.00 (although we should proceed with caution as the pair aproaches 80.00, another area of support).

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Folks I’m liking the action in the stock market and that is where I’ve been for a while now.Link

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Today EUR/JPY hit an area of resistance around 137.45, forming a double top on the daily chart.  We've been predominantly in an uptrend over the last several months, so long term, I'm still bullish.  However, with the formation of the double top, now may be a good time for the pair to take a breather and retrace back to the rising trendline.  Of course, it could go ahead and just break through the resistance, in which case I think we'd see a decent move up.

So, in anticipation of either move, I'm going to straddle today's price action with a buy above today's high and a sell below the low.  Here are my orders.

• Long Entry:  137.506
• Initial Stoploss:  135.722

• Short Entry:  135.722
• Initial Stoploss:  137.506

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