My picks: Remain Long USD/CAD
Expertise: Economics and Behavioral Finance
Average Time Frame of Trades: 1 day to 3 months

I have been holding a long position in the USD/CAD since 1.10 and I expect the U.S. dollar to rise further against the Canadian dollar going forward. In fact, high exchange rate volatility combined with a significant deterioration of interest rate differentials in favor of the U.S. dollar is likely to keep high yielding currencies under stress. Moreover, with the world economy expected to slow down even further, the demand for commodities will probably dry up which could suggest further losses to commodity sensitive currencies like the Canadian dollar.

My picks: USDCAD Short, against 1.30, target 1 below 1.2120, target 2 below 1.1450
Expertise: Technical
Average Time Frame of Trades: 1Month

The rally from just below 1.15 is in 5 waves and could be a truncated 5th wave that completes a 5 wave advance from .9055.  If so, then a correction back to at least 1.15 and possibly or lower is underway now. 

The drop from 1.2993 to 1.2120 is in 5 waves, which is bearish so the minimum price target for bears from this pattern is one pip below 1.2120.  Price should remain below 1.2993 if the larger trend has indeed turned.

My picks: AUDCAD Breakout
Expertise: Combining Money Management with Fundamental and Technical Analysis
Average Time Frame of Trades: 3 days - 1 week

I have been watching AUDCAD for a long-time now, using its surprisingly consistent band between 0.785075 and 0.8150/75 as a range opportunity and long-term breakout candidate. With high-level Canadian event risk on the docket for Friday and the pair's insistent tests of resistance over the past week, the probability of a breakout occuring before the end of the week seems to be very high. At this point, the most important characteristic of this pair is its incredible consistency with obeying the aforementioned range through all of November and now going into December. We haven't seen such a pattern from this currency in at least a decade, and few other pairs (except from those that are pegged) can boast such a range. Therefore, I merely need to work with the technical range to make my setup. Resistance is of primary interest considering the bullish interest we have seen this past week - and especially with today's market stepping slightly higher with each tick. Support is still around the 0.7850, multi-session lows; but the rising trendline from Oct 10th lows may pull that floor up 25 to 50 points.

Though this has been said many times before, the breakout risk for this pair is very high. This warning loses its luster after a while; but with each day that passes, AUDCAD sets a new precedence for congestion and finds more range traders that set their stops ever closer to the range (supplying the fuel for stop reversals and the ultimate breakout). While standard economic releases have not generated much in the way of price action (volatility has jumped, but direction has always eluded this pair), the Canadian employment number is known to be a frequent market mover. Optimally, a major disappointment with AUDCAD testing highs today could leverage fundamental interest just enough to produce a breakout. However, it is also important to watch out for a breakout that happens before the actual release - a setup that has been happening with more frequency lately. If an upside breakout occurs today, I will only follow it with a confirmed close of a higher time frame candle (4 hour, 8 hour, daily). A move tomorrow may come more quickly, so it will have to be placed on the move. Alternatively, a reversal back into the range will negate my interest in a breakout until either support or resistance is once again put under pressure for a few days.

My picks: AUDCAD Long (pending)
Expertise: Macro Fundamentals, Classic Techncial Analysis
Average Time Frame of Trades: 1 week - 6 months

Yesterday's price action saw AUDCAD break and close above the upper boundary of a Triangle that has contained the pair since late September. The last bit of resistance stands at 0.8207, the 38.2% Finonacci retracement of the 07/29-10/08 decline. Look for a daily close above this level to go long, initially targeting the 50% Fib at 08517.

For detailed analysis of the major forex currency pairs, please see my weekly technical outlook.

My picks: Short USD/CAD
Expertise: Fundamentals Combined With Technicals
Average Time Frame of Trades: 2-4 Days

I remain Bullish on the USD/CAD as the recent rate cuts by the ECB,BOE, Riksbank and India’s central bank underline the weakness in the global economy which will remain a weighing factor for the "loonie'. The Canadian employment report is due out tomorrow and is expected to show job losses of 15,000. The lack of global demand for raw materials and weakening domestic growth may force the BoC to continue easing.

My picks: Long USD/CAD
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days

Falling oil prices continues to favor a bullish outlook for the USDCAD, and I expect the pair to push higher over the near-term as it continues to hold within an upward trend. After falling to a low of 1.1463 on 11/5, the pair bounced back to reach a high of 1.2986 on 11/21, and may push higher over the follow week as investors curb their appetite for risk. However, the divergence from the 20-Day SMA suggests that a minor retracement could be under way, and we may see the USDCAD pair gains over the remainder of the trading week. Over the near-term, I anticipate the pair to continue its move to the upside, and may test the 10/28 high of 1.3020 for resistance over the near-term.