Forex Analysis : USD/CAD
Another clear case of what printing US$ 600bn does to your currency against paper backed with slightly more than ink, it’s last chance time for the USD, with little support below last week’s low of 0.9779 until 0.9400 or so.
• Much like the Swiss Franc, Aussie…and plenty of other crosses against the USD, the Canadian Dollar looks as if it will strengthen further, but given its close proximity to key support, a rebound is possible over the next few days.
• Look for a rebound and hourly close or two above 0.9820 as a sign a dead cat bounce might last a short while, but it may first dip to 0.9750 or so before rebounding.
• If 0.9750 fails to hold there is of course no real support left, just theoretically derived numbers, the first of which is 0.9710