Posted Aug 1, 2015 by Martin Armstrong
The C$ fell sharply against the U.S. dollar, confirming our computer forecast for a rising dollar and completing the trend to initiate a deflationary cycle in the U.S. post-2015.75. Basis the cash, the U.S. dollar closed ABOVE the 1008 high, showing that we are moving beyond the crisis level felt during the 2007–2009 panic.
The Greenback closed against the C$, settling on the cash at 13088 above the 2008 high. Resistance appears at the 13346 level with key resistance at 13535–13590 zone. This is the real critical area, and if exceeded will warn of a possible further rally up to the 13900–14200 level with a gap thereafter to 14900 followed by 15900.
The higher the Greenback, the greater the debt crisis outside the U.S., which will drive the flight to quality into the USA. When that peaks (most likely as early as 2017) look out for what follows.
Tags: C$, Canada, Flight to Quality, Greenback