Attached is the daily chart of December Canadian Dollar.
As a follow up to the piece we put out Wednesday, we now have a long bias in Canadian Dollar. The recent break above 100.45 creates an upside objective of 101.25. We would stop out on a settle below 100.40.
The fundamental story involves a shift to risk assets and a perception that the U.S. may avoid the Fiscal Cliff. The most interesting indicator has been oils reluctance to trade lower despite a cease fire in the Middle East. This indicates underlying strength in the oil market which suggests firmer footing for the global economy particularly oil producers like Canada.