An oil bottom, or at least a temporary bottom is imminent. Major commodity currencies such as the Australian Dollar and Canadian Dollar are at or approaching major structural demand. Energy funds comprised of the largest energy companies (Exxon, Kinder Morgan, Chevron, etc.) are meeting at multi-year structural support. Whether oil already bottomed or not, however, is still in question. Since timing a perfect bottom is very difficult and often an unnecessary exercise, it's definitely time to be prepared to go long Canadian and Australian dollars, as well as energy ETF's. If oil hits the $40 level we should see USDCAD at 1.30's, Aussie at 76's - 77's, and ERX at $47 - $50. At this point, the risk/reward would allow us to take advantage with great leverage.