A fresh upside breakout in the Canadian puts the currency to its highest level since theFebruary 19th peak. Overt weakness in the US Dollar, news that a referendum in Quebec will be avoided and talkof a possible tax cut from the Finance Minister has given the Canadian bulls some fresh ammunition. We see theFebruary 19th spike high at 91.38 to become support in the days and weeks ahead and we can’t rule out anultimate rise to the 93.00 level in the event that views toward the Chinese economy normalize and US data showssome improvement ahead. Be bullish as long as the June Canadian holds above 90.71.
