Despite the extreme washout in the Canadian in the first half of January and the fact thatrecent declines have added to a precipitous decline throughout 2013, there doesn’t seem to be that much impetusto bounce off the recent lows. While there might be some support from reports of a rise in a private optimismsurvey in Canada, the trade probably needs to see something clearly indicative of growth to take its foot off theshort side gas pedal. Ongoing weakness in energy prices and key energy bellwether stocks would also seem toleave the bear camp with an edge. In fact, the recent consolidation in the Canadian has relieved some of theoversold technical standing in the RSI measure and therefore the path of least resistance remains down for thenear term.
