After a recent short covering rally, the Canadian looks poised to resume its downwardmarch on the charts. While the market might be proven wrong it would appear that traders are anticipating additional Fed action ahead and therefore the Canadian and physical commodity markets are on guard againstthe prospect of a slight headwind to the global recovery effort. While there is some hope that the President willhint at pipeline potentials that in turn could improve oil export prospects for Canadian oil, the President is unlikelyto change political direction on such a controversial issue in a State of the Union address. Initial but thin support isseen at 89.68 and there might be little to stop the Canadian from a return to new lows before the end of this week.
