Recently we gave you two live trades to look at:

British Pound long V Dollar and this made a lovely profit on the breakout and long Dollar v Japanese Yen which again gave another great profit.

Here we are going to look at the above trades and perhaps the best trend at the moment in currencies (it's not one of the above or the euro) and a possible contrary trade.

Let's get started.

Before we get started for those of you who have not read previous articles pull up a free chart service such as futuresource.com.

You will need the following studies:

Bollinger bands, RSI and stochastics - if you are not familiar with them check our other articles.

Right lets take a look at some currencies and their profit potential.

Japanese Yen

The odd one out of the major currencies, as its weak against the dollar.

After the recent spike low in the dollar we have seen a lovely rise and were looking to get out here. We have a quadruple top and stochastics are very overbought - time to bank the profit.

We would not take a contrary trade here.

We would look to go long the dollar at lower levels and will wait for the pullback.

B Pound

We banked our profit here and the pound remains out and out bullish.

Price momentum is building and stochastics are set to cross with bullish divergence prices have tested and held the middle Bollinger band.

While the RSI is a little high the odds favour the bulls and a pop to the upside and test of the highs - the bulls get the nod.

The best trend on the board!

Many traders simply like to trade the:

Euro, pound, yen and swissie, but in my view all traders should look at the Canadian Dollar.

It's got good liquidity and great trends and in our trading it is one of the most profitable currencies we trade.

Check out the classic downtrend on the charts.

Here we are going to look at a possible contrary trade and a change of direction.

Pull up the weekly chart and you will see 1.10 is key support from June 2006 and were approaching these levels now.

RSI is almost in oversold territory and stochastics are starting to bottom out.

This gives us the big picture - now pull up the daily chart.

1.1079 was the close so we are near the key level again, but were trying to hammer out support and a triple bottom is forming.

RSI is oversold and stochastics are looking to turn down.

With the 1.10 area being key support we would look for the triple bottom to hold and wait for stochastics to cross with bullish divergence - the bulls then get the nod.

From these oversold areas, we expect a good pop to the upside.

This is an aggressive trade, but 1.10 is great support and a contrary trade if momentum turns bullish has got good upside and a tight stop.

The Canadian dollar has given us a super profit on the downside so we don't mind risking a bit on a contrary trade, providing momentum confirms a bottom.

Don't jump wait for confirmation of change in momentum.

Good luck and good trading!