Happy holidays everyone!  I hope this holiday season finds you happy and healthy.  Take a moment to reflect on the good things in your life.  Many of us, especially as traders, focus on the negative, and need to be reminded of all the good things around us.  2008 has been a wild year and one that will not soon be forgotten, at least not without a lot of help from captain Jack :).  I suggest trading very little these next few weeks as liquidity will steadily dry up as the rest of the year grinds on.  Near term we expect some more Dollar strength but that strength is temporary at best and we will be fading it as always.  Be safe the rest of the year and lets all make 2009 the best year yet here on FXStreet!   

Right now this pair is just below 1.5900 and it is Friday afternoon.  If it closes below the blue trend line then I am shorting this pair down to the green trend line. 

Can I get in earlier?  Sure.  Why not?  Just go down to a lower time frame and draw another line.

If the pair closes below the red trend line…that is an earlier entry.  The trade might trigger because if the pair goes sideways because the red trend line is so steep.

Stop loss is above the highs at 1.5956.  Profit target is at the green trend line which is currently at 1.5727.

I think that if it goes that far it can go even lower….we will see.

-Dave

The USD/CAD short trade is still going, and going.  This pair has treated me pretty poorly over the months and years, and I keep going back to it anyway, thinking, "This time is different."  Well, maybe this time is different, and we’ll see this pair finish what it started.

My stop is now just above 1.0220, and the profit target is way down at .9870 (the greenline). 

The GBP/USD short term trade is open; the red SteepLine is broken, and the pair is making its way down to the blue trendline — you can’t even see the greenline on this chart, but we’ll get back to showing that level if the pair can make its way down.

My stop loss is up at 1.9975.  Here’s the chart:

Wombats are angry! 

It is Friday afternoon and this is close to the 9600 area.  Even so, a good close below that area would trigger sell trade. Stop loss above .9635.  Target is the green line or .9555 or so.

-Dave

Today was good for short term trading.  The EUR/USD 5 minute trade that we set up a little while ago worked out nicely.  To see the original trade idea, close your ideas and imagine a field full of beautiful flowers, or just click here.

Here is the result: the pair did close above our trendline, and did rise to our purple resistance line of happiness.

I could not help myself.  I added another trendline — a red one (the steepest kind we draw) to the setup.  Now on the GBP/USD we can trade a close below the red trendline down to the blue.  There are a lot of people talking about how the pair is overextended, including James Chen, my fellow blogger here  at FXStreet.

Here’s the new trendline:

Here’s another way of looking at the GBP/USD.  There are so many ways to look at support and resistance; this happens to be another double-trendline setup that I like very much.

Oh, and a manure thief really did fall into dung.  Not making that up.

Here is the 4 HR chart to start us off, so that we can see the green (base) trendline.

And here’s the 1 HR setup that we can use for the trade.  I am waiting for a close below the blue trendline, as usual.

Dave is getting ready for chart school, so he’s busy right now.  He wanted me to pass on this chart for your enjoyment.  He is waiting for the EUR/JPY to close above the red trendline.  Where it goes from there?  He said he’ll update you later, if it breaks.  But at least he’s going for 169.00.

This is a short term trade.  Today I think we’re better off looking at new trades that are short term — because so many bigger moves happened yesterday.  And I am not in the mood to hold anything over the weekend if I can avoid it.

The lady really did find a live grenade in her backyard.  And the EUR/USD did blow up yesterday.  Let’s see if it can keep going: if the pair closes above the red steep trendline on this 5 minute chart, then it can most likely get all the way to the purple resistance level.