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The USD/CAD pair fell hard during the session on Thursday after the quantitative measures was announced by the Federal Reserve. Oil prices rose, and as such the Canadian dollar did as well. This pair fell obviously, and as such we are clear of the 0.97 handle now.
Looking forward, it appears that we are aiming for the 0.95 level in the short term, with the 0.92 level been targeted later. We think the rallies in this market can be sold now, and as such we are very bearish of the pair. We have recently broken out of a massive consolidation area between 0.98 and 1.04, and as such we think of the measured move down to 0.92 will eventually happen. Going forward, we are selling rallies as they fail.