I'm seeing a potential setup on the EUR/USD daily chart tonight that might turn into a trading opportunity for me.  The pair is at a major rising trendline, and is respecting the trendline... so far.  Here's the chart:

The prevailing trend is up, so I'm still bullish and expecting a bounce. If the pair bounces, I'll catch it near the bottom of the channel with a long position. However, I'm ever-aware of the possibility that the uptrend may be running out of steam, and we could see a breakdown. It's at a key turning point, and I expect the next day or two to tell us which way she's headed.

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
  

I'm seeing another possible long opportunity in GBP/JPY.  My last long was closed a couple of days ago as the pair dipped and took out my stoploss.  I was able to bank 566.8 pips on the first half of the position and 424.7 pips on the second half.  (By the way, I still have my EUR/AUD short open.  Unfortunately, it has not fared as well - I may be exiting that position soon.)

Tonight, I see that the pair has pulled back to the rising trendline on the daily chart.  This could be a good low-risk opportunity if the trendline holds.  Here's the daily... 

The overall trend of EUR/AUD has been up since July 2008.  However, looking at just the past six months, the pair has been in a fairly wide sideways trend, bouncing between 1.8500 and 2.1000.  In the past three months, though, we've seen the pair consolidate, forming a nice symmetrical triangle.

The triangle is reaching the point where price has to break out one way or another, and I plan to jump on board with a position when it does.  Hopefully we'll see a nice sustained move in the direction that it chooses to break, but I'm always aware of the possibility of a fakeout.

I'm going to straddle the recent activity by placing a buy order above the recent high of 2.0027 and a sell order below the recent low of 1.93724.  It's possible that neither will be hit in the next few days, especially since we're approaching the weekend, but if the pair does happen to break, I'll be ready.

• Initial Long Entry:  2.0037
• Initial Stoploss:  1.9837

• Initial Short Entry:  1.93624
• Initial Stoploss:  1.95624