[B]My picks:[/B] Staying long USD against EUR, CAD
[B]Expertise:[/B] Fundametnals combined with technicals
[B]Average Time Frame of Trades:[/B] 1 day - 1 week
USD/CAD Update: My trade from Friday was to buy USD.CAD on a close above falling trendline support at 1.1150/65, which was indeed the case. I’m looking to target the 38.2% fib of 1.2508-1.0783 at 1.1440 and former support at 1.1463/70, and stops should be placed according to preferred risk/reward levels.
EUR/USD Update: My long-standing EUR/USD pick was stopped out at breakeven on Thursday, but I opted to re-enter the position on Friday. Clearly, this price is not as good as what I was holding on to previously, but now that FXCM SSI (a contrarian indicator) has flipped from net short to net long, I am all the more convinced that EUR/USD may ultimately pull back toward the 50% fib of 1.2885-1.4340 at 1.3620, if not the psychologically important 1.3500 mark.
Ultimately, increase risk aversion in the markets would bode well for both of these trades, since that sort of sentiment tends to favor the US dollar. Also, in such a situation, commodities are likely to fall, suggesting the Canadian dollar (linked to oil) could tumble as well. Check out our look at the top 5 events that could move the FX markets this week.