28 November 2007 - 9:51trade of the day 11/28

In my heart I wanted to advise to short USD/CAD yesterday but did not.  As a consequence I have made my first poor recommendation on this site, and do apologize for it.  The CAD is still a favorite at this time, especially since it has already bounced against the dollar, retracing substantially and is now it appears the favorite currency to buy against the greenback once again by forex traders.  The $1 level is key and a great place to put a limit to sell USD/CAD.  You might not get that opportunity but it may be wise to place that order prior to the existing home sales release which may cause enough volatility to trigger that order.  In any event the USD/CAD still looks like a short to me.