The Canadian Dollar has become tightly linked with the action in crude oil. Not surprisingly, the slide in energy prices is being seen as the EKG of the world economy and until that measure stops sliding, the bear case in oil and most non-dollar currencies should remain down. Favorable Canadian auto sales results and soaring real estate prices in pockets of Canada are being discounted because of big picture macro-economic forward views. Next downside targeting in the Canadian on the monthly chart is seen roughly 59 ticks below current levels.
