The beating is expected to continue in the Canadian as crude oil futures positioning as of early last week still showed a net spec and fund long of 322,000 contracts. Residual strength in the Dollar, slumping activity in Canadian oil and energy businesses and broad based global slowing fears leave the Canadian mired in a downward motion on its charts. Perhaps the Canadian is headed down to 80.00 on the weekly charts, which is the level where the currency ultimately fell to, in the wake of the sub-prime crisis. We seriously doubt the current economic crisis compares to the sub-prime crisis, but sentiment controls even when sentiment is irrational.
