Canadian Dollar Makes A New Low For The Year

Today the Canadian Dollar made a new low for the year. As you now I've been bearish on this currency and was looking for lower prices.

Below is a seasonal chart of the Canadian Dollar and as you can see there is some seasonal weakness that comes into play right around now going into December. As long as the Canadian dollar continues to go lower I will stay short but I am also trailing a stop to lock in profits just in case this market turns back up. We'll see how things unfold.

Forex: Canadian Dollar Update

Last weekend I posted about a potential trade I was looking to make in the Canadian dollar on the short side. Since then this currency has sold off rather sharply. I am short from yesterday's close and I'm looking for the Canadian Dollar to make new lows for the year. As always, we'll see what happens.

Australian Dollar Moving Up Nicely

Lately we've all been focused on the Japanese Yen, but has anybody noticed what the Australian Dollar is doing? It's been moving up nicely these past few weeks.

Above are two charts of the Australian Dollar. The top chart is a daily and the bottom chart is a monthly. Notice where this currency is at the moment. It's about to make multi year highs. G'day mate!

Forex Testing Support

Just a quick update on the Forex markets. If you look at the above chart, you will see that 3 out of the 4 major currencies are all testing key support levels. The Euro currency has returned to the breakout level and it's 50 day moving average. The British Pound is testing a gap that was left behind last month and the Japanese Yen is beginning to rally off the lows from October.

The strongest currency is clearly the British Pound and the Euro. If you are bullish, those are the currencies to be buying and this appears to be a good spot. If you are bearish, you would want to short the Japanese Yen on rallies or when the October support is taken out.