I am bullish the Canadian dollar for a variety of reasons. Yesterday, USD/CAD was trading at 1.24 and hopefully you were able to bank some pips following the interview. However if you haven’t I still believe that USD/CAD is headed lower. As you can see in the following chart, the currency has entered the “Sell Zone” which I determine using Bollinger Bands. A confluence of moving averages and a key Fibonacci level made 1.2415 a very strong resistance point. The 1.22 level will also be a key support to watch as it represents the monthly lows, but if that level is cleared, USD/CAD could be on its way back to 1.20.

I'm also high on shorting EUR/AUD. It is now below a very significant support level and as long as it does not close back above 1.85, it could fall as low as 1.80.



Kathy Lien is Director of Currency Research at GFT, and runs KathyLien.com.