I did an interview at the Trader’s Expo about the US Dollar and the Klingon Darsek, which is not even a real currency.  Click below to watch the video.  Don’t forget to "Digg" it if you think it’s worthwhile.  The full link is also below.

Here is the full link:

http://video.msn.com/video.aspx?mkt=en-us&vid=ba6e58d6-8f97-4cab-b77e-5822c24b54b7

The EUR/USD nearly got to the bottom of the channel, and then reversed.  It had gone about 30 pips before the reversal.  Then it rose up 25 pips or so, and closed above the top of the channel.  This stops out our first sell trade with a loss of 16, and opened a buy trade and the Winnipeg lines on the outside of the channel worked nicely for the profit target.

It’s not a coincidence that USD spelled differently spells SUD, as in soap, as in bubbles, as in something bubbling upward.  The breakout we were waiting for yesterday did happen, and did move to our profit target quickly.

The EUR/USD, which is not my favorite pair to trade, is now inside of a descending channel.  A close above the top of the channel will bring us a buy trade, and the targets are already displayed (our Winnipeg lines).

If the pair prints a reversal candle — a doji, a hammer, a pregnant fair, angry bozz, or JarJar Shrinks, then we can go ahead and sell the pair and target the first fibble back inside the channel as our profit target.

The AUD/USD idea that we talked about a million years ago didn’t work out — we got stopped out, if I remember correctly, as we sold the pair on the way down to a former channel.  Well, it’s been a while since I looked at it, so I pulled it up today and here is what I found:

I had given up on the idea, but as you can see, I shouldn’t have.  It was a fine plan, and it would have worked out nicely if we had just given it another try or two.  Not only did we reach the top of the old channel, but we see that the pair went right inside of the channel, and then hit the bottom of the channel and stopped.  And then it dropped below the channel and Winnipegged right up against the bottom all over again (see the blue circle). Remember:  old support and resistance comes back.

The Winnipeg lines just keep on giving.  The CAD/JPY just keeps on trucking down to the extensions.

The USD/CAD played ball quite well.  This was my favorite trade we’ve taken so far.  Just worked out brilliantly.

To see the original idea, click here.

Our support and resistance trade on the pair worked out nicely. 

Well, our EUR/USD trade idea that we talked about on the 23rd worked out very nicely.  Hardly any whipsaw and only the slightest of Winnipeg moves back to the line that was broken.  This was a very nice and quick trade.  We don’t get too many of these so clean and so quick, so savor the moment. 

When we’re trading from the daily chart, nothing is going to happen at light speed.  But we did have a great bounce off our support line that we talked about way back on July 11.  Here’s the updated chart.  We did get the 50 pips, or more, depending on how you played it.  If your trade is still open, then make sure your stop is at break even and let it ride up to the round number 1.2200.