Canadian Dollar Cross Pick 06.08.09

[B]My picks:[/B] Pending Short USD/CAD
[B]Expertise:[/B] Fundamentals and Technicals
[B]Average Time Frame of Trades:[/B] 2 - 10 Days

The USD/CAD continued to push higher this week, but failed to break above the 20-Day SMA at 1.1296, and the lack of momentum to push above the moving average favors a bearish outlook for the pair over the near-term. As Goldman Sachs forecast crude oil prices to reach $85 a barrel by the end of the year, expectations for higher commodity prices may continue to drive the Canadian dollar higher. As a result, I have placed a short entry at 1.1160, and have placed my target at 1.0811, the 6/2 close, with the stop at 1.1296, the 20-Day SMA.