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!

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!

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.

There's a pin bar forming on the USD/JPY daily chart tonight.  The predominant trend is down, and a nice pin bar has formed at what I'm expecting to be the top of a retracement.  Of course, as always, I could be wrong.  Check out the chart...

Today many of the pairs I follow saw a strong resumption of the major trend after experiencing a bit of a correction the past week or so.  I'm looking at GBP/JPY in particular, which bounced nicely off of the rising trendline.  The daily chart is shown below.

I'm going to jump into a long position in this pair and see if the prevailing trend continues to carry us up.  There's a bit of overhead resistance where a double top has formed, so I'll be watching carefully around that price level to see how the pair reacts.

• Long Entry:  147.505
• Initial Stoploss:  142.75 

On another note, I closed half of my EUR/AUD short earlier this month at 1R, but the second half is still open.  Today's thrust downward is an encouraging sign that that pair's move down may not be over yet.