With Today's High (Tues Oct 3rd) in at 1.0856 and this mornings drop through yesterday's Low of 1.0717 ... the stage is set for Lower Prices ... however ... stiff resistance may be encountered between 1.0630 and 1.0656 as the 26/9 Day Spread narrows into this midway balancing point ... which may turn into a "re-balancing" for this Market before future Price direction is decided upon. A Low into the 1.0550 Price area into Thursday is not out of the question either. The question now is ... will the Bears decide that the Low for the year is already in at 1.0209 after this first Week of November plays out?

Did anyone see that "inteview" on CNBC yesterday with Paul Volcker and Marina B.? Wow. Suggests to me that the Obama administration, US Treasury and this Fed are totally out-of-control and unrestrained, and that Rahm Emanual or someone has put a gag order on Volcker. I'm thinking,.. the US and the Weimar Republic, deja vu all over again.

Why this plunge of almost 200 points in one day?

Especially after the Cdn PBO (Kevin Page) stated today that Canadian deficits thru 2014 will be five times larger than what the Cdn government is admitting! The PBO (which is like the Canadian equivalent of the Congressional Budget Office) expects large, ever-increasing structural deficits in Canada, much like the 1980's and early 90's.

With the NFP announcement coming up this Friday, here is a 5 minute chart of how the USDCAD behaved during the last month's announcement.

Did anyone trade the pair at that time? Your commments are welcomed...

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Also don't forget the Canadian employment report.
Last time it was surprisingly "very strong", although it has been subsequently learned that those numbers were questionable.

Absolutely...

This week is loaded with announcements that will have an impact on trading...potentially for the longer term.

Take a look at John Rivera's post of earlier today...

Trading Economic News

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So it looks like its Carry Trade time for still another 3-4 months. Maby not with this pair but perhaps AUS/USD?

Of the two, the AUDUSD would be more preferable as a carry trade option. The AUDUSD is still in an uptrend on the Daily chart and the interest rate differential is 3%....3.25% on the AUD and .25% on the USD.

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So where do you see USD/CAD next?
Thanks.

I wonder too. Guess it depends on Fridays employment numbers.

Beyond that, who knows which will win the race to the bottom. Canadian budget deficits are going to the moon, while the US Fed and Treasury apparently want the USD to keep falling.

Jimmy Rogers says gold will soon be $2000. He's bet his personal fortune on it.

Addendum... that would be one factor favoring USD over CAD as US has more gold.
Also would support a carry trade strategy of borrowing USD to buy AUD.

Now that Thursday's Low is in at 1.0609 ... a Slow draw to the upside may begin to play out towards the 1.0734 Price area.

I haven't heard that regarding Mr. Rogers. I wonder what his views are on the USD? One could argue that all markets are breathing in and out in response to the movement of the USD over the past several months.

Its been an interesting week with Gold shooting up but the USD (and even silver) not confirming the rise. We'll see how this resolves possibly tomorrow morning.

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I agree and I think that will continue to be the driving force going forward.
Jimmy Rogers was on BNN yesterday. I imagine that he or anyone else who is very bullish on gold is bearish on the USD. There were also a parade of gold bulls on CNBC yesterday with even higher expectations for gold. Like $2500 and $3000. Talking wave theories like ten times off the bottom and so on.

I JUST WANTED TO POST THIS CHART TO SEE HOW YOU GUYS WOULD RESPOND

GOD BLESS

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