Elliot Wave Big Picture Outlook of the CAD

Knee-Jerk Reaction to the Death of OBL

As you can see from the chart, there was a knee-jerk reaction to the death of Osama Bin Laden at around the 11th hour of May 1st as evidence by the large green spikes on the chart. Unfortunately for the USD, it was down hill after midnight as the rally fizzled. Be on the lookout for a possible knee-jerk reaction in the CAD in response to tonight's federal election results for Canada.

Change Of Address

I'm on temporary leave due to my change in employment so posting will be intermittent. I should be back into full swing of things on or after May 2nd, 2011.

What Happened To All The Fed Hawks?

Where did all the Fed hawks go? No Fed members voting against the current policy, what happen to all the hawkish talk. I guess that's all it was, talk. And the reason for the talk was the USD was in danger of falling off a cliff. As you can see from the chart above, the hawks were trying to make sure that the supporting trend line would hold. So by talking tough and hawkish they were able to shake off the speculators who were jumping on the short side. Remember, all that the Fed and the government want is a controlled or orderly decent in the USD not a waterfall decline. Now that support has been violated, expect more USD weakness on the way, at least until the end of QE2 at the end of June.

Currency Humour, Sort Of