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.