Pick of the Day: USD/CAD

Today’s pick is based on general fundamentals and the trend. We all know the loonie and other “commodity” currencies have been on a tear against the US dollar. Even with oil slightly pulling back from record highs, we still saw the loonie gain some ground against the greenback. Along with commodities, we see interest rate differentials narrowing, foreign interest in US securities declining, and lack of follow through from strong US data. It’s just not looking too good at the moment for the US dollar, and it’s showing on the charts. So here’s a couple of trade ideas:

Short USD/CAD at 1.1241, stop at 1.1295, PT1 at 1.1210, PT2 at 1.1185

Here’s a long trade idea just in case we hear Bernanke speak tomorrow all gung ho on US economics at 10:00 am EST.

Long USD/CAD at 1.1330, stop at 1.1290, PT1 at 1.1345, PT2 at 1.1365

We may not even see any movement until Bernanke speakes unless the weekly unemployment rate(8:30 am EST) comes out with a big surprise. Other than that there are no major news to report until then. Be very cautious around those times.