Canadian Dollar Cross Pick 06.15.09

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

Following the short USD/CAD recommendation from the previous week, the decline last Tuesday, triggered the sell-entry I placed at 1.1160, and I moved my stop to 1.1100 following the break below 1.1000, but the rebound later in the week closed my position with a net gain of nearly 50pip. Higher commodity prices have certainly helped to boost demands for the Canadian dollar and expectations for higher oil prices may lead the pair lower over the near-term however, the pair pushed above 1.1300 during the overnight on the back of U.S. dollar strength, and we may see the pair continue to push higher over the week to retrace the sell-off from May. As a result, I will wait for further confirmation (higher highs and higher lows) before entering a long USD/CAD position, and will remain flat against the pair this week.