Commodity-linked currencies are also under pressure this morning, led by an almost 1% drop in the Canadian Dollar. Huge drops in gold and silver as well as thoughts that a slowdown in the U.S. economy will drag the rest of the world’s expansion down are triggering mass liquidations in the Australian and New Zealand Dollars as well.
The main trend turned up in the USD CAD earlier in the week on the break through the main top at .9575. The last main range is .9973 to .9444. The current rally is likely to test the retracement zone at .9708 to .9771 over the short-run. The April 18 swing top at .9721 is also a prime target. A break through this level is likely to trigger an even further acceleration to the upside.
