After a distinct upside breakout last week, the Canadian has become short termoverbought. With a Chinese holiday overnight, noted follow through weakness in global equities and an election inQuebec, the Canadian is probably poised for some minor corrective action. Near term downside targeting mightbe seen down at recent consolidation lows of 90.35 but the Canadian should be able to hold up against moreaggressive selling because of the better than expected non-farm payroll gain last week and also because of thedecline in the Canadian unemployment rate.
